Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-36713 | ||
Entity Registrant Name | LIBERTY BROADBAND CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1211994 | ||
Entity Address, Address Line One | 12300 Liberty Boulevard | ||
Entity Address, City or Town | Englewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80112 | ||
City Area Code | 720 | ||
Local Phone Number | 875-5700 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10.7 | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Denver, CO | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001611983 | ||
Amendment Flag | false | ||
Series A common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series A common stock | ||
Trading Symbol | LBRDA | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 18,235,373 | ||
Series B common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,023,432 | ||
Series C common stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series C common stock | ||
Trading Symbol | LBRDK | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 122,667,679 | ||
Series A Cumulative Redeemable Preferred Stock. | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Series A Cumulative Redeemable preferred stock | ||
Trading Symbol | LBRDP | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 158 | $ 375 |
Trade and other receivables, net | 178 | 201 |
Prepaid and other current assets | 94 | 84 |
Total current assets | 430 | 660 |
Property and equipment, net (note 2) | 1,053 | 1,011 |
Intangible assets not subject to amortization | ||
Goodwill (note 6) | 755 | 755 |
Intangible assets subject to amortization, net (note 6) | 461 | 516 |
Other assets, net | 236 | 180 |
Total assets | 15,641 | 15,142 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 86 | 92 |
Deferred revenue | 30 | 20 |
Current portion of debt, including zero and $1,373 measured at fair value, respectively (note 7) | 3 | 1,376 |
Indemnification obligation (note 4) | 50 | |
Other current liabilities | 59 | 137 |
Total current liabilities | 178 | 1,675 |
Long-term debt, net, including $1,255 and zero measured at fair value, respectively (note 7) | 3,733 | 2,425 |
Obligations under tower obligations and finance leases, excluding current portion (note 8) | 83 | 86 |
Long-term deferred revenue | 65 | 63 |
Deferred income tax liabilities (note 9) | 2,216 | 2,040 |
Preferred stock (note 10) | 202 | 202 |
Other liabilities | 141 | 150 |
Total liabilities | 6,618 | 6,641 |
Equity | ||
Additional paid-in capital | 3,107 | 3,318 |
Accumulated other comprehensive earnings (loss), net of taxes | 52 | 9 |
Retained earnings | 5,843 | 5,155 |
Total stockholders' equity | 9,003 | 8,483 |
Non-controlling interests | 20 | 18 |
Total equity | 9,023 | 8,501 |
Commitments and contingencies (note 13) | ||
Total liabilities and equity | 15,641 | 15,142 |
Cable certificates | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 550 | 550 |
Other amortizable intangible assets | ||
Intangible assets not subject to amortization | ||
Indefinite-lived intangibles | 40 | 37 |
Series A common stock | ||
Equity | ||
Common stock | ||
Series B common stock | ||
Equity | ||
Common stock | ||
Series C common stock | ||
Equity | ||
Common stock | 1 | 1 |
Charter. | ||
Current assets: | ||
Investment in Charter, accounted for using the equity method (note 5) | $ 12,116 | $ 11,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short-term debt, measured at fair value | $ 0 | $ 1,373 |
Long-term debt, measured at fair value | $ 1,255 | $ 0 |
Series A common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 18,233,573 | 18,528,468 |
Common Stock, Shares, Outstanding | 18,233,573 | 18,528,468 |
Series B common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 18,750,000 | 18,750,000 |
Common Stock, Shares, Issued | 2,025,232 | 2,106,636 |
Common Stock, Shares, Outstanding | 2,025,232 | 2,106,636 |
Series C common stock | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 123,704,814 | 125,962,296 |
Common Stock, Shares, Outstanding | 123,704,814 | 125,962,296 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Revenue | $ 981 | $ 975 | $ 988 |
Revenue, Product and Service [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating costs and expenses: | |||
Operating expense (exclusive of depreciation and amortization shown separately below) | $ 245 | $ 253 | $ 282 |
Selling, general and administrative, including stock-based compensation (note 11) | 433 | 432 | 442 |
Depreciation and amortization | 230 | 262 | 267 |
Litigation settlement, net of recoveries (note 13) | 67 | 95 | |
Total operating costs and expenses | 908 | 1,014 | 1,086 |
Operating income (loss) | 73 | (39) | (98) |
Other income (expense): | |||
Interest expense (including amortization of deferred loan fees) | (206) | (133) | (117) |
Share of earnings (losses) of affiliate (note 5) | 1,155 | 1,326 | 1,194 |
Gain (loss) on dilution of investment in affiliate (note 5) | (60) | (63) | (102) |
Realized and unrealized gains (losses) on financial instruments, net (note 4) | (101) | 334 | 67 |
Gain (loss) on dispositions, net (note 1) | 179 | 12 | |
Other, net | 27 | (70) | (6) |
Earnings (loss) before income taxes | 888 | 1,534 | 950 |
Income tax benefit (expense) | (200) | (277) | (218) |
Net earnings (loss) | 688 | 1,257 | 732 |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 688 | $ 1,257 | $ 732 |
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 4.71 | $ 8.01 | $ 3.97 |
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share (note 2) | $ 4.68 | $ 7.96 | $ 3.93 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Earnings (Loss) | |||
Net earnings (loss) | $ 688 | $ 1,257 | $ 732 |
Other comprehensive earnings (loss), net of taxes: | |||
Credit risk on fair value debt instruments gains (loss) | 43 | (5) | (1) |
Other comprehensive earnings (loss), net of taxes | 43 | (5) | (1) |
Comprehensive earnings (loss) | 731 | 1,252 | 731 |
Comprehensive earnings (loss) attributable to Liberty Broadband shareholders | $ 731 | $ 1,252 | $ 731 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 688 | $ 1,257 | $ 732 |
Adjustments to reconcile net earnings (loss) to net cash from operating activities: | |||
Depreciation and amortization | 230 | 262 | 267 |
Stock-based compensation | 34 | 37 | 41 |
Litigation settlement, net of recoveries | 67 | ||
Share of (earnings) losses of affiliate, net | (1,155) | (1,326) | (1,194) |
(Gain) loss on dilution of investment in affiliate | 60 | 63 | 102 |
Realized and unrealized (gains) losses on financial instruments, net | 101 | (334) | (67) |
Deferred income tax expense (benefit) | 168 | 54 | (15) |
(Gain) loss on dispositions, net | (179) | (12) | |
Other, net | (4) | (4) | (3) |
Changes in operating assets and liabilities: | |||
Current and other assets | 20 | 140 | 214 |
Payables and other liabilities | (126) | (93) | (62) |
Net cash provided by (used in) operating activities | 16 | (56) | 3 |
Cash flows from investing activities: | |||
Capital expenditures | (222) | (181) | (134) |
Grant proceeds received for capital expenditures | 6 | 25 | |
Cash received for Charter shares repurchased by Charter | 394 | 3,034 | 4,179 |
Cash proceeds from dispositions, net | 163 | 15 | |
Cash released from escrow related to dispositions | 23 | ||
Purchases of investments | (53) | ||
Other investing activities, net | 2 | 6 | 2 |
Net cash provided by (used in) investing activities | 150 | 3,047 | 4,062 |
Cash flows from financing activities: | |||
Borrowings of debt | 1,501 | 325 | 1,467 |
Repayments of debt, tower obligations and finance leases | (1,616) | (231) | (2,476) |
Repurchases of Liberty Broadband common stock | (227) | (2,882) | (4,272) |
Indemnification payment to Qurate Retail | (45) | ||
Other financing activities, net | (3) | (9) | (11) |
Net cash provided by (used in) financing activities | (390) | (2,797) | (5,292) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (224) | 194 | (1,227) |
Cash, cash equivalents and restricted cash, beginning of period | 400 | 206 | 1,433 |
Cash, cash equivalents and restricted cash, end of period | $ 176 | $ 400 | $ 206 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Series C common stock Common stock | Additional paid-in capital | Accumulated other comprehensive earnings (loss) | Retained earnings | Noncontrolling interest in equity of subsidiaries | Total |
Balance at Dec. 31, 2020 | $ 2 | $ 10,320 | $ 15 | $ 3,166 | $ 12 | $ 13,515 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 732 | 732 | ||||
Other comprehensive earnings (loss), net of taxes | (1) | (1) | ||||
Stock-based compensation | 41 | 41 | ||||
Liberty Broadband stock repurchases | (1) | (4,271) | (4,272) | |||
Noncontrolling interest activity at Charter and other | 124 | 124 | ||||
Balance at Dec. 31, 2021 | 1 | 6,214 | 14 | 3,898 | 12 | 10,139 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 1,257 | 1,257 | ||||
Other comprehensive earnings (loss), net of taxes | (5) | (5) | ||||
Stock-based compensation | 37 | 37 | ||||
Liberty Broadband stock repurchases | (2,882) | (2,882) | ||||
Noncontrolling interest activity at Charter and other | (51) | 6 | (45) | |||
Balance at Dec. 31, 2022 | 1 | 3,318 | 9 | 5,155 | 18 | 8,501 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 688 | 688 | ||||
Other comprehensive earnings (loss), net of taxes | 43 | 43 | ||||
Stock-based compensation | 34 | 34 | ||||
Liberty Broadband stock repurchases | (227) | (227) | ||||
Noncontrolling interest activity at Charter and other | (18) | 2 | (16) | |||
Balance at Dec. 31, 2023 | $ 1 | $ 3,107 | $ 52 | $ 5,843 | $ 20 | $ 9,023 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation The accompanying consolidated financial statements include the accounts of Liberty Broadband Corporation and its controlled subsidiaries (collectively, "Liberty Broadband," the "Company," “us,” “we,” or “our” unless the context otherwise requires). Liberty Broadband Corporation is primarily comprised of GCI Holdings, LLC (“GCI Holdings” or “GCI”), a wholly owned subsidiary, and an equity method investment in Charter Communications, Inc. (“Charter”). GCI Holdings provides a full range of data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions primarily in Alaska under the GCI brand. Charter is a leading broadband connectivity company and cable operator. Over an advanced communications network, Charter offers a full range of state-of-the-art residential and business services including Spectrum Internet, TV, Mobile and Voice. For small and medium-sized companies, Spectrum Business ® ® ® On December 18, 2020, GCI Liberty, Inc. (“GCI Liberty”), the parent company of GCI Holdings, was acquired by Liberty Broadband (the “Combination”). Skyhook Holdings, Inc. (“Skyhook”) was a wholly owned subsidiary of Liberty Broadband until its sale on May 2, 2022 for aggregate consideration of approximately $194 million, including amounts held in escrow of approximately $23 million that were released to Liberty Broadband on May 3, 2023. Liberty Broadband recognized a gain on the sale of $179 million, net of closing fees, in the second quarter of 2022, which is recorded in Gain (loss) on dispositions, net in the accompanying consolidated statement of operations. Skyhook is included in Corporate and other through April 30, 2022 and is not presented as a discontinued operation as the sale did not represent a strategic shift that had a major effect on Liberty Broadband’s operations and financial results. Included in Revenue in the accompanying consolidated statements of operations is $6 million and $18 million for the years ended December 31, 2022 and 2021, respectively, related to Skyhook. Included in Net earnings (loss) in the accompanying consolidated statement of operations are earnings of $4 million and less than $1 million for the years ended December 31, 2022 and 2021, respectively, related to Skyhook. Spin-Off Arrangements During May 2014, the board of directors of Liberty Media Corporation and its subsidiaries (“Liberty”) authorized management to pursue a plan to spin-off to its stockholders common stock of a wholly owned subsidiary, Liberty Broadband, and to distribute subscription rights to acquire shares of Liberty Broadband’s common stock (the “Broadband Spin-Off”). In connection with the Broadband Spin-Off, Liberty and Liberty Broadband entered into certain agreements in order to govern certain of the ongoing relationships between the two companies and to provide for an orderly transition, including a services agreement and a facilities sharing agreement. Additionally, in connection with a prior transaction, GCI Liberty and Qurate Retail, Inc. (“Qurate Retail”) entered into a tax sharing agreement, which was assumed by Liberty Broadband as a result of the Combination. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and Liberty Broadband and other agreements related to tax matters. Pursuant to the services agreement, Liberty provides Liberty Broadband with general and administrative services including legal, tax, accounting, treasury, information technology, cybersecurity and investor relations support. Liberty Broadband reimburses Liberty for direct, out-of-pocket expenses incurred by Liberty in providing these services which are negotiated semi-annually, as necessary. Pursuant to the services agreement, in connection with Liberty’s employment arrangement with Gregory B. Maffei, the Company’s President and Chief Executive Officer, components of Mr. Maffei’s compensation are either paid directly to him or reimbursed to Liberty, based on allocations set forth in the services agreement. For the years ended December 31, 2023, 2022 and 2021, the allocation percentage for Liberty Broadband was 23%, 33% and 37%, respectively, but is subject to adjustment on an annual basis and upon the occurrence of certain events. Under these various agreements, amounts reimbursable to Liberty were approximately $7 million and $10 million for the years ended December 31, 2023 and 2022, respectively. Liberty Broadband had a tax sharing receivable with Qurate Retail of approximately $16 million and $7 million as of December 31, 2023 and 2022, respectively, included in Other assets. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and represent the historical consolidated financial information of GCI Holdings and the Company’s interest in Charter, as well as certain other assets and liabilities. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Cash and Cash Equivalents Cash consists of cash deposits held in global financial institutions. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash that has restrictions upon its usage has been excluded from cash and cash equivalents. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. The Company maintains some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and interest is not billed to the customer. For financed device contracts with customers, which is included within trade accounts receivable and other assets, the Company imputes interest and records the imputed interest as a reduction to the related accounts receivable. Interest is recognized over the financed device payment term. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in its existing accounts receivable. The Company bases its estimates on the aging of its accounts receivable balances, financial health of specific customers, regional economic data, changes in its collections process, regulatory requirements and its customers’ compliance with the Federal Communications Commission ("FCC") rules. The Company reviews its allowance for credit losses methodology at least annually. Depending upon the type of account receivable, the Company’s allowance is calculated using a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Write-offs of accounts receivable balances occur when the Company deems the receivables are uncollectible. The Company does not have any off-balance-sheet credit exposure related to its customers. A summary of activity in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 is as follows (amounts in millions): Additions Deductions Balance at Charged to beginning of costs and Write-offs net Balance at year expenses of recoveries end of year 2023 $ 4 5 (4) 5 2022 $ 4 4 (4) 4 2021 $ — 4 — 4 Derivative Instruments and Hedging Activities All of the Company’s derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. None of the Company’s derivatives are currently designated as hedges, as a result, changes in the fair value of the derivative are recognized in earnings. The fair value of certain of the Company’s derivative instruments are estimated using the Black Scholes Merton option-pricing model (“Black-Scholes model”). The Black-Scholes model incorporates a number of variables in determining such fair values, including expected volatility of the underlying security and an appropriate discount rate. The Company obtained volatility rates from pricing services based on the expected volatility of the underlying security over the remaining term of the derivative instrument. A discount rate was obtained at the inception of the derivative instrument and updated each reporting period, based on the Company’s estimate of the discount rate at which it could currently settle the derivative instrument. The Company considered its own credit risk as well as the credit risk of its counterparties in estimating the discount rate. Management judgment was required in estimating the Black-Scholes variables. The Company had no outstanding derivative instruments at December 31, 2023 or December 31, 2022. Investments in Equity Method Affiliates For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the equity method investee. The Company determines the difference between the purchase price of the equity method investee and the underlying equity which results in an excess basis in the investment. This excess basis is allocated to the underlying assets and liabilities of the Company’s equity method investee through an acquisition accounting exercise and is allocated within memo accounts used for equity method accounting purposes. Depending on the applicable underlying assets, these amounts are either amortized over the applicable useful lives or determined to be indefinite lived. Changes in the Company’s proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity method investee, are recognized in the statement of operations through the gain (loss) on dilution of investment in affiliate line item. We periodically evaluate our equity method investment to determine if decreases in fair value below our cost basis are other than temporary. If a decline in fair value is determined to be other than temporary, we are required to reflect such decline in our consolidated statements of operations. Other than temporary declines in fair value of our equity method investment would be included in share of earnings (losses) of affiliates in our consolidated statements of operations. The primary factors we consider in our determination of whether declines in fair value are other than temporary are the length of time that the fair value of the investment is below our carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the equity method investee. In addition, we consider the reason for the decline in fair value, be it general market conditions, industry specific or equity method investee specific; analysts' ratings and estimates of 12 month share price targets for the equity method investee; changes in stock price or valuation subsequent to the balance sheet date; and our intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. As Liberty Broadband does not control the decision making process or business management practices of our affiliates accounted for using the equity method, Liberty Broadband relies on management of its affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, Liberty Broadband relies on the audit reports that are provided by the affiliates’ independent auditors on the financial statements of such affiliate. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty Broadband’s consolidated financial statements. See note 5 for additional discussion regarding our investment in Charter. Other Investments All marketable equity and debt securities held by the Company are carried at fair value, generally based on quoted market prices and changes in the fair value of such securities are reported in realized and unrealized gain (losses) on financial instruments in the accompanying consolidated statements of operations. The Company elected the measurement alternative (defined as the cost of the security, adjusted for changes in fair value when there are observable prices, less impairments) for its equity securities without readily determinable fair values. The Company performs a qualitative assessment each reporting period for its equity securities without readily determinable fair values to identify whether an equity security could be impaired. When the Company’s qualitative assessment indicates that an impairment could exist, it estimates the fair value of the investment and to the extent the fair value is less than the carrying value, it records the difference as an impairment in the consolidated statements of operations. Property and Equipment Property and equipment is stated at depreciated cost less impairments, if any. Construction costs of facilities are capitalized. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2023, that management intends to place in service when the assets are ready for their intended use. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable. Net property and equipment consists of the following: December 31, 2023 2022 amounts in millions Land $ 16 16 Buildings (25 years) 108 105 Telephony transmission equipment and distribution facilities ( 5 832 810 Cable transmission equipment and distribution facilities ( 5 118 108 Support equipment and systems ( 3 112 106 Fiber optic cable systems ( 15 128 73 Other ( 2 72 52 Construction in progress 197 126 1,583 1,396 Accumulated depreciation (530) (385) Property and equipment, net $ 1,053 1,011 Depreciation of property and equipment under finance leases is included in depreciation and amortization expense in the consolidated statements of operations. Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $166 million, $195 million and $192 million, respectively. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. Material interest costs incurred during the construction period of non-software capital projects are capitalized. Interest is capitalized in the period commencing with the first expenditure for a qualifying capital project and ending when the capital project is substantially complete and ready for its intended use. Capitalized interest costs for the years ended December 31, 2023, 2022 and 2021 were $7 million, $4 million and $2 million, respectively. Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds its fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other liabilities in the consolidated balance sheets. When the liability is initially recorded, the Company capitalizes a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. The majority of the Company’s asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. The asset retirement obligation is in Other liabilities in the consolidated balance sheets. Following is a reconciliation of the beginning and ending aggregate carrying amounts of the liability for asset retirement obligations (amounts in millions): Balance at December 31, 2021 $ 79 Liability incurred — Accretion expense 2 Liability settled — Balance at December 31, 2022 81 Liability incurred 1 Accretion expense 2 Liability settled — Balance at December 31, 2023 $ 84 Certain of the Company’s network facilities are on property that requires it to have a permit and the permit contains provisions requiring the Company to remove its network facilities in the event the permit is not renewed. The Company expects to continually renew its permits and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists that the Company would not be able to successfully renew a permit, which could result in it incurring significant expense in complying with restoration or removal provisions. Intangible Assets Internally used software, whether developed or purchased and installed as is, is capitalized and amortized using the straight-line method over an estimated useful life of three internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. The Company has Software as a Service ("SaaS") arrangements which are accounted for as service agreements and are not capitalized. Internal and other third party costs for SaaS arrangements are capitalized or expensed in accordance with the internal use software guidance as discussed in the preceding paragraph. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment upon certain triggering events. Intangible assets with estimable useful lives are being amortized over three Goodwill, cable certificates (certificates of convenience and public necessity) and other intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Cable certificates represent agreements or authorizations with government entities that allow access to homes in cable service areas, including the future economic benefits of the right to solicit and service potential customers and the right to deploy and market new services to potential customers. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. The Company’s annual impairment assessment of its indefinite-lived intangible assets is performed during the fourth quarter of each year. The accounting guidance allows entities the option to perform a qualitative impairment test for goodwill. The entity may resume performing the quantitative assessment in any subsequent period. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of its reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis, the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value and to the extent the carrying value is greater than the fair value, the difference is recorded as an impairment in the consolidated statements of operations. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company’s valuation analyses are based on management’s best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Revenue Recognition GCI Holdings Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. GCI Holdings recognizes revenue when it satisfies a performance obligation by transferring control of a product or service to a customer. Substantially all of GCI Holdings’ revenue is earned from services transferred over time. If at contract inception, GCI Holdings determines the time period between when it transfers a promised good or service to a customer and when the customer pays for that good or service is one year or less, it does not adjust the promised amount of consideration for the effects of a significant financing component. Certain of GCI Holdings’ customers have guaranteed levels of service. If an interruption in service occurs, GCI Holdings does not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by GCI Holdings from a customer, are excluded from revenue from contracts with customers. Nature of Services and Products Data Data revenue is generated by providing data network access, high-speed internet services, and product sales. Monthly service revenue for data network access and high-speed internet services is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Internet service excess usage revenue is recognized when the services are provided. GCI Holdings recognizes revenue for product sales when a customer takes possession of the equipment. GCI Holdings provides telecommunications engineering services on a time and materials basis. Revenue is recognized for these services as-invoiced. Wireless Wireless revenue is generated by providing access to, and usage of GCI Holdings’ network by consumer, business, and wholesale carrier customers. Additionally, GCI Holdings generates revenue by selling wireless equipment such as handsets and tablets. In general, access revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and control transfers to the customer. Consideration received from the customer is allocated to the service and products based on stand-alone selling prices when purchased together. New and existing wireless customers have the option to purchase certain wireless devices in installments over a period of up to 36 months. Under the Upgrade Now program, participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the wireless equipment installment plan is exchanged for the used handset. GCI Holdings accounts for this upgrade option as a right of return with a reduction of Revenue and Operating expense for handsets expected to be upgraded based on historical data. Other Other revenue consists of video and voice revenue. as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Usage based fees are recognized as services are provided. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations as customers purchase multiple services and products within those contracts. For such arrangements, revenue is allocated to each performance obligation based on the relative standalone selling price for each service or product within the contract. Standalone selling prices are generally determined based on the prices charged to customers. Significant Judgments Some contracts with customers include variable consideration and may require significant judgment to determine the total transaction price, which impacts the amount and timing of revenue recognized. GCI Holdings uses historical customer data to estimate the amount of variable consideration included in the total transaction price and reassess its estimate at each reporting period. Any change in the total transaction price due to a change in the estimated variable consideration is allocated to the performance obligations on the same basis as at contract inception. Any portion of a change in transaction price that is allocated to a satisfied or partially satisfied performance obligation is recognized as revenue (or a reduction in revenue) in the period of the transaction price change. Variable consideration has been constrained to reduce the likelihood of a significant revenue reversal. Often contracts with customers include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the standalone selling price for each distinct performance obligation. Services and products are generally sold separately, which helps establish standalone selling price for services and products GCI Holdings provides. Remaining Performance Obligations The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023 of $278 million in 2024 2025 2026 2027 2028 The Company applies certain practical expedients as permitted and does not disclose information about remaining performance obligations that have original expected durations of one year or less, information about revenue remaining from usage based performance obligations that are recognized over time as-invoiced, or variable consideration allocated to wholly unsatisfied performance obligations. Contract Balances The Company had receivables of $181 million and $189 million at December 31, 2023 and 2022, respectively, the long-term portion of which are included in Other assets, net. The Company had deferred revenue of $43 million and $33 million at December 31, 2023 and 2022, respectively, the long-term portion of which are included in Other liabilities. The receivables and deferred revenue are only from contracts with customers. GCI Holdings’ customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in the accompanying consolidated statements of operations as the services are provided. Changes in the contract liability balance for the Company during 2023 was not materially impacted by other factors. Assets Recognized from the Costs to Obtain a Contract with a Customer Management expects that incremental commission fees paid to intermediaries as a result of obtaining customer contracts are recoverable and therefore the Company capitalizes them as contract costs. Capitalized commission fees are amortized based on the transfer of goods or services to which the assets relate which typically range from two The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Selling, general, and administrative expenses. Revenue from contracts with customers, classified by customer type and significant service offerings, is as follows: Years ended December 31, 2023 2022 2021 amounts in millions GCI Holdings Consumer Revenue Data $ 233 231 214 Wireless 143 143 134 Other 41 55 86 Business Revenue Data 424 392 364 Wireless 45 47 68 Other 18 24 27 Lease, grant, and revenue from subsidies 77 77 77 Total GCI Holdings 981 969 970 Corporate and other — 6 18 Total $ 981 975 988 Advertising Costs Advertising costs generally are expensed as incurred. Advertising expense aggregated $5 million, $4 million and $5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising costs are reflected in the Selling, general and administrative, including stock-based compensation line item in our consolidated statements of operations. Stock-Based Compensation As more fully described in note 11, Liberty Broadband has granted to its directors, employees and employees of certain of its subsidiaries, restricted stock and stock options to purchase shares of Liberty Broadband common stock (collectively, “Awards”). Liberty Broadband measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value of the Award and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). Liberty Broadband measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award and remeasures the fair value of the Award at each reporting date. Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and income tax bases of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than not that such net deferred tax assets will not be realized. We consider all relevant factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as assessing available tax planning strategies. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in Interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in Other, net in the accompanying consolidated statements of operations. We recognize in our consolidated financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. Certain Risks and Concentrations GCI Holdings offers wireless and wireline telecommunication services, data services, video services, and managed services to customers primarily throughout Alaska. Because of this geographic concentration, growth of GCI Holdings’ business and operations depends upon economic conditions in Alaska. GCI Holdings receives support from each of the various Universal Service Fund ("USF") programs: rural health care, schools and libraries, high-cost, and lifeline. The programs are subject to change by regulatory actions taken by the FCC or legislative actions, therefore, changes to the programs could result in a material decrease in revenue that the Company has recorded. Historical revenue recognized from the programs was 39%, 35% and 32% of GCI Holdings’ revenue for the years ended December 31, 2023, 2022 and 2021, respectively. The Company had USF net receivables of $102 million at December 31, 2023. See note 13 for more information regarding the rural health care receivables. Loss Contingencies Periodically, we review the status of all significant outstanding matters to assess any potential financial exposure. When it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. Comprehensive Earnings (Loss) Comprehensive earnings (loss) consists of net earnings (loss), comprehensive e |
Supplemental Disclosures to Con
Supplemental Disclosures to Consolidated Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Disclosures to Consolidated Statements of Cash Flows | |
Supplemental Disclosures to Consolidated Statements of Cash Flows | (3) Supplemental Disclosures to Consolidated Statements of Cash Flows Years ended December 31, 2023 2022 2021 amounts in millions Cash paid for interest, net of amounts capitalized $ 211 137 125 Cash paid for taxes, net $ 49 266 238 Noncash activity: Property and equipment expenditures incurred but not yet paid $ 15 22 19 The following table reconciles cash and cash equivalents and restricted cash reported in the Company’s consolidated balance sheets to the total amount presented in its consolidated statements of cash flows: Years ended December 31, 2023 2022 2021 amounts in millions Cash and cash equivalents $ 158 375 191 Restricted cash included in other current assets 16 24 15 Restricted cash included in other long-term assets 2 1 — Total cash and cash equivalents and restricted cash at end of period $ 176 400 206 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Assets and Liabilities Measured at Fair Value | |
Assets and Liabilities Measured at Fair Value | (4) Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any recurring assets or liabilities measured at fair value that would be considered Level 3. The Company’s assets and liabilities measured at fair value are as follows: December 31, 2023 December 31, 2022 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 78 78 — 288 288 — Indemnification obligation $ — — — 50 — 50 Exchangeable senior debentures $ 1,255 — 1,255 1,373 — 1,373 Pursuant to an indemnification agreement initially entered into by GCI Liberty and assumed by Liberty Broadband in connection with the Combination, Liberty Broadband had agreed to indemnify Liberty Interactive LLC (“LI LLC”), a subsidiary of Qurate Retail, for certain payments made to holders of LI LLC’s 1.75% exchangeable debentures due 2046 (the "LI LLC 1.75% Exchangeable Debentures"). The indemnification liability due to LI LLC pertained to the holders’ ability to exercise their exchange right according to the terms of the LI LLC 1.75% Exchangeable Debentures on or before October 5, 2023. Such amount equaled the difference between the exchange value and par value of the LI LLC 1.75% Exchangeable Debentures at the time the exchange occurred. The indemnification obligation recorded in the consolidated balance sheet as of December 31, 2022 represented the fair value of the estimated exchange feature included in the LI LLC 1.75% Exchangeable Debentures primarily based on observable market data as significant inputs (Level 2). As of December 31, 2023, all remaining LI LLC 1.75% Exchangeable Debentures were either retired or exchanged and indemnification payments of $45 million were made by Liberty Broadband to Qurate Retail in connection with exchanges of $330 million of the LI LLC 1.75% Exchangeable Debentures that settled in the period. The Company’s exchangeable senior debentures are debt instruments with quoted market value prices that are not considered to be traded on “active markets,” as defined in GAAP, and are reported in the foregoing table as Level 2 fair value. Other Financial Instruments Other financial instruments not measured at fair value on a recurring basis include trade receivables, trade payables, accrued and other current liabilities, equity securities, current portion of debt (with the exception of the 1.25% Debentures prior to their redemption in the third quarter of 2023, and the 2.75% Debentures and the 1.75% Debentures prior to their redemption in the first quarter of 2023 (each as defined in note 7)) and long-term debt (with the exception of the 3.125% Debentures (as defined in note 7)). With the exception of long-term debt and preferred stock, the carrying amount approximates fair value due to the short maturity of these instruments as reported on our consolidated balance sheets. The carrying value of the Margin Loan Facility, the Senior Credit Facility and the Wells Fargo Note Payable (each as defined in note 7) all bear interest at a variable rate and therefore are also considered to approximate fair value. Realized and Unrealized Gains (Losses) on Financial Instruments Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following: Years ended December 31, 2023 2022 2021 amounts in millions Indemnification obligation $ 5 273 21 Exchangeable senior debentures (1) (106) 61 46 $ (101) 334 67 (1) The Company has elected to account for its exchangeable senior debentures using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the consolidated statements of operations are primarily due to market factors driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive income. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk before tax was a gain of $55 million, a loss of $7 million and a loss of $2 million for the years ended December 31, 2023, 2022 and 2021, respectively. The cumulative change was a gain of $55 million as of December 31, 2023. |
Investment in Charter Accounted
Investment in Charter Accounted for Using the Equity Method | 12 Months Ended |
Dec. 31, 2023 | |
Investment in Charter Accounted for Using the Equity Method | |
Investment in Charter Accounted for Using the Equity Method | (5) Investment in Charter Accounted for Using the Equity Method Through a number of prior years’ transactions and the Combination, Liberty Broadband has acquired an interest in Charter. The investment in Charter is accounted for as an equity method affiliate based on our voting and ownership interest and the board seats held by individuals appointed by Liberty Broadband. As of December 31, 2023, the carrying and market value of Liberty Broadband’s ownership in Charter was approximately $12.1 billion and $18.0 billion, respectively. We own an approximate 31.9% economic ownership interest in Charter, based on shares of Charter’s Class A common stock issued and outstanding as of December 31, 2023. Upon the closing of the Time Warner Cable, LLC merger, the Second Amended and Restated Stockholders Agreement, dated as of May 23, 2015, by and among Charter, Liberty Broadband and Advance/Newhouse Partnership, as amended (the “Stockholders Agreement”), became fully effective. Pursuant to the Stockholders Agreement, Liberty Broadband’s equity ownership in Charter (on a fully diluted basis) is capped at the greater of 26% or the voting cap (as defined below) (“Equity Cap”). As of December 31, 2023, due to Liberty Broadband’s voting interest exceeding the current voting cap of 25.01%, our voting control of the aggregate voting power of Charter is 25.01%. Under the Stockholders Agreement, Liberty Broadband has agreed to vote (subject to certain exceptions) all voting securities beneficially owned by it, or over which it has voting discretion or control that are in excess of the voting cap in the same proportion as all other votes cast by public stockholders of Charter with respect to the applicable matter. In February 2021, Liberty Broadband was notified that its ownership interest, on a fully diluted basis, had exceeded the Equity Cap set forth in the Stockholders Agreement. On February 23, 2021, Charter and Liberty Broadband entered into a letter agreement . Pursuant to this letter agreement, following any month during which Charter purchases, redeems or buys back shares of its Class A common stock, and prior to certain meetings of Charter’s stockholders, Liberty Broadband will be obligated to sell to Charter, and Charter will be obligated to purchase, such number of shares of Class A common stock as is necessary (if any) to reduce Liberty Broadband’s percentage equity interest, on a fully diluted basis, to the Equity Cap (such transaction, a “Charter Repurchase”). The per share sale price for each share of Charter will be equal to the volume weighted average price paid by Charter in its repurchases, redemptions and buybacks of its common stock (subject to certain exceptions) during the month prior to the Charter Repurchase (or, if applicable, during the relevant period prior to the relevant meeting of Charter stockholders). Under the terms of the letter agreement, Liberty Broadband sold Charter Class A common stock to Charter to maintain our fully diluted ownership percentage at 26% as follows: Years ended December 31, 2023 2022 2021 dollar amounts in millions Number of Charter Class A shares sold to Charter 950,721 6,168,174 6,077,664 Amount of Charter Class A shares sold to Charter $ 394 3,034 4,179 Subsequent to December 31, 2023, Liberty Broadband sold 213,216 shares of Charter Class A common stock to Charter for $81 million. During the years ended December 31, 2023, 2022 and 2021, there were dilution losses of $60 million, $63 million, and $102 million, respectively, in the Company’s investment in Charter. The dilution losses were primarily attributable to the e xercise of stock options and restricted stock units by employees and other third parties, offset by a gain on dilution related to Charter’s repurchase of Liberty Broadband’s Charter shares The excess basis has been allocated within memo accounts used for equity method accounting purposes as follows (amounts in millions): Years ended December 31, 2023 2022 Property and equipment, net $ 403 524 Customer relationships, net 2,049 2,230 Franchise fees 3,843 3,809 Trademarks 29 29 Goodwill 4,049 3,975 Debt (317) (450) Deferred income tax liability (1,472) (1,505) $ 8,584 8,612 Property and equipment and customer relationships have weighted average remaining useful lives of approximately 4 years and 7 years, respectively, and franchise fees, trademarks and goodwill have indefinite lives. The excess basis of outstanding debt is amortized over the contractual period using the straight-line method. The change in excess basis for the year ended December 31, 2023 was primarily due to an increase in excess basis due to Charter’s share buyback program, partially offset by Liberty Broadband’s participation in Charter’s share buyback program. These impacts were more than offset by amortization expense during the period, resulting in a slight decrease in the excess basis in Charter from December 31, 2022 to December 31, 2023. Summarized financial information for Charter is as follows: Consolidated Balance Sheets December 31, December 31, 2023 2022 amounts in millions Current assets $ 4,132 4,017 Property and equipment, net 39,520 36,039 Goodwill 29,668 29,563 Intangible assets, net 69,141 70,135 Other assets 4,732 4,769 Total assets $ 147,193 144,523 Current liabilities $ 13,214 12,065 Deferred income taxes 18,954 19,058 Long-term debt 95,777 96,093 Other liabilities 4,530 4,758 Equity 14,718 12,549 Total liabilities and shareholders' equity $ 147,193 144,523 Consolidated Statements of Operations Years ended December 31, 2023 2022 2021 amounts in millions Revenue $ 54,607 54,022 51,682 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 33,405 32,876 31,482 Depreciation and amortization 8,696 8,903 9,345 Other operating (income) expense, net (53) 281 329 42,048 42,060 41,156 Operating income 12,559 11,962 10,526 Interest expense, net (5,188) (4,556) (4,037) Other income (expense), net (517) 56 (101) Income tax (expense) benefit (1,593) (1,613) (1,068) Net earnings (loss) 5,261 5,849 5,320 Less: Net income attributable to noncontrolling interests (704) (794) (666) Net Income (loss) attributable to Charter shareholders $ 4,557 5,055 4,654 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | (6) Goodwill and Intangible Assets Goodwill and Indefinite Lived Assets Changes in the carrying amount of goodwill are as follows: Corporate and GCI Holdings other Total amounts in millions Balance at December 31, 2021 $ 755 7 762 Dispositions — (7) (7) Balance at December 31, 2022 755 — 755 Balance at December 31, 2023 $ 755 — 755 As presented in the accompanying consolidated balance sheets, cable certificates are the majority of the other significant indefinite lived intangible assets. Intangible Assets Subject to Amortization, net December 31, 2023 December 31, 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (132) 383 515 (91) 424 Other amortizable intangible assets 156 (78) 78 147 (55) 92 Total $ 671 (210) 461 662 (146) 516 Intangible assets are being amortized generally on an accelerated basis as reflected in amortization expense and in the future amortization table below. Amortization expense for intangible assets with finite useful lives was $64 million, $67 million and $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in millions): 2024 $ 58 2025 $ 53 2026 $ 51 2027 $ 48 2028 $ 47 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Debt | (7) Debt Debt is summarized as follows: Outstanding principal Carrying value December 31, December 31, December 31, 2023 2023 2022 amounts in millions Margin Loan Facility $ 1,460 1,460 1,400 3.125% Exchangeable Senior Debentures due 2053 1,265 1,255 — 1.25% Exchangeable Senior Debentures due 2050 — — 798 2.75% Exchangeable Senior Debentures due 2050 — — 560 1.75% Exchangeable Senior Debentures due 2046 — — 15 Senior notes 600 623 628 Senior credit facility 394 394 397 Wells Fargo note payable 5 5 5 Deferred financing costs (1) (2) Total debt $ 3,724 3,736 3,801 Debt classified as current (3) (1,376) Total long-term debt $ 3,733 2,425 Margin Loan Facility On May 17, 2023, a bankruptcy remote wholly owned subsidiary of the Company (“ ”) entered into Amendment No. 7 to Margin Loan Agreement (the “Seventh ”), which amends SPV’s margin loan agreement, dated as of August 31, 2017 (as amended by the Seventh Amendment, the “ ”), with a group of lenders. The Margin Loan Agreement provides for (x) a term loan credit facility in an aggregate principal amount of $1.15 billion (the “ ” and proceeds of such facility, the “ ”), (y) a revolving credit facility in an aggregate principal amount of $1.15 billion (the “ ” and proceeds of such facility, the “ ”; the Revolving Loans, collectively with the Term Loans, the “ ”) and (z) an uncommitted incremental term loan facility in an aggregate principal amount of up to $200 million (collectively, the “Margin Loan Facility”). No additional borrowings under the Margin Loan Agreement were made in connection with the Seventh Amendment. SPV’s obligations under the Margin Loan Facility are secured by shares of Charter owned by SPV. The Seventh Amendment provided for, among other things, (i) the extension of the scheduled maturity dates to May 12, 2026, (ii) the interest under the Margin Loan Agreement to be determined by reference to the Secured Overnight Financing Rate (“SOFR”) instead of the London Interbank Offered Rate (“LIBOR”), (iii) an increase in the Base Spread (as defined below) applicable to all loans funded under the Margin Loan Agreement and (iv) the removal of certain conditions precedent to the release of pledged shares. Outstanding borrowings under the Margin Loan Agreement were $1.5 billion and $1.4 billion as of December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023, SPV was permitted to borrow an additional $840 million under the Margin Loan Agreement, subject to certain funding conditions, which may be drawn until five Borrowings under the Margin Loan Agreement prior to the Seventh Amendment bore interest at the three-month LIBOR rate plus a per annum spread of 1.5%, effective with the Fourth Amendment on May 12, 2021. Prior to the Fourth Amendment effective date on May 12, 2021, the per annum spread was 1.85%. The Margin Loan Agreement contains various affirmative and negative covenants that restrict the activities of SPV (and, in some cases, the Company and its subsidiaries with respect to shares of Charter owned by the Company and its subsidiaries). The Margin Loan Agreement does not include any financial covenants. The Margin Loan Agreement does contain restrictions related to additional indebtedness and events of default customary for margin loans of this type. SPV’s obligations under the Margin Loan Agreement are secured by first priority liens on a portion of the Company’s ownership interest in Charter, sufficient for SPV to meet the loan to value requirements under the Margin Loan Agreement. The Margin Loan Agreement indicates that no lender party shall have any voting rights with respect to the shares pledged as collateral, except to the extent that a lender party buys any shares in a sale or other disposition made pursuant to the terms of the loan agreement. Exchangeable Senior Debentures On August 27, 2020, the Company closed a private offering of $575 million aggregate original principal amount of its 2.75% Exchangeable Senior Debentures due 2050 (the “ 2.75% Debentures”), including debentures with an aggregate original principal amount of $75 million issued pursuant to the exercise of an option granted to the initial purchasers. During the first quarter of 2023, the Company repurchased all of the outstanding 2.75% Debentures using proceeds from the issuance of the 3.125% Debentures, as defined and further described below. On February 28, 2023, the Company closed a private offering of $1,265 million aggregate original principal amount of its 3.125% Exchangeable Senior Debentures due 2053 (the “ 3.125% Debentures”), including debentures with an aggregate original principal amount of $165 million issued pursuant to the exercise of an option granted to the initial purchasers. Upon an exchange of the 3.125% Debentures, the Company, at its election, may deliver shares of Charter Class A common stock, the value thereof in cash, or any combination of shares of Charter Class A common stock and cash. Initially, 1.8901 shares of Charter Class A common stock are attributable to each $1,000 original principal amount of 3.125% Debentures, representing an initial exchange price of approximately $529.07 for each share of Charter Class A common stock. A total of 2,390,977 shares of Charter Class A common stock are attributable to the 3.125% Debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing June 30, 2023. The 3.125% Debentures may be redeemed by the Company, in whole or in part, on or after April 6, 2026. Holders of the 3.125% Debentures also have the right to require the Company to purchase their 3.125% Debentures on April 6, 2026. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the 3.125% Debentures plus accrued and unpaid interest to the redemption date, plus any final period distribution. As of December 31, 2023, a holder of the 3.125% Debentures does not have the ability to exchange their debentures and, accordingly, the 3.125% Debentures have been classified as long-term debt within the consolidated balance sheet as of December 31, 2023. As mentioned above, the Company used the net proceeds of the offering of the 3.125% Debentures, together with existing cash on hand, to repurchase all of the outstanding The Company has elected to account for all of its exchangeable senior debentures at fair value in its consolidated financial statements. Accordingly, changes in the fair value of these instruments are recognized in in the accompanying consolidated statements of operations. See note 4 for information related to unrealized gains (losses) on debt measured at fair value. The Company reviews the terms of all the debentures on a quarterly basis to determine whether an event has occurred to require current classification on the consolidated balance sheets. Senior Notes In connection with the closing of the Combination on December 18, 2020, GCI, LLC became an indirect wholly owned subsidiary of the Company. GCI, LLC is the issuer of $600 million aggregate principal amount of 4.75% senior notes due 2028 (the “Senior Notes”). The Senior Notes were issued by GCI, LLC on October 7, 2020 and are unsecured. Interest on the Senior Notes is payable semi-annually in arrears. The Senior Notes are redeemable at the Company’s option, in whole or in part, at a redemption price defined in the indenture, and accrued and unpaid interest (if any) to the date of redemption. The Senior Notes are stated net of an aggregate unamortized premium of $23 million at December 31, 2023. Such premium is being amortized to interest expense in the accompanying consolidated statements of operations. Senior Credit Facility In connection with the closing of the Combination on December 18, 2020, GCI, LLC became an indirect wholly owned subsidiary of the Company. GCI, LLC is the borrower under the Senior Credit Facility (as defined below). On October 15, 2021, GCI, LLC entered into an Eighth Amended and Restated Credit Agreement (the “Senior Credit Facility Eighth Amendment”), which includes a $550 million revolving credit facility, with a $25 million sublimit for standby letters of credit, that matures on October 15, 2026 and a $250 million Term Loan A (the “Term Loan A”) that matures on October 15, 2027. Additionally, the $400 million Term Loan B (the “Term Loan B”) which existed prior to the Senior Credit Facility Eighth Amendment, was repaid in full using the proceeds from the Term Loan A together with $150 million in borrowings under the revolving credit facility. On June 12, 2023, GCI, LLC entered into Amendment No. 1 to the Eighth Amended and Restated Credit Agreement (as amended, the “Senior Credit Facility”) which modified the interest rates to reference SOFR instead of LIBOR. Following the amendment in June 2023, the revolving credit facility borrowings under the Senior Credit Facility that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin that varies between 0.50% and 1.75% depending on GCI, LLC’s total leverage ratio. The revolving credit facility borrowings under the Senior Credit Facility that are SOFR loans bear interest at a per annum rate equal to the applicable SOFR plus a Credit Spread Adjustment (as defined in the Senior Credit Facility) plus a margin that varies between 1.50% and 2.75% depending on GCI, LLC’s total leverage ratio. Term Loan A borrowings that are alternate base rate loans bear interest at a per annum rate equal to the alternate base rate plus a margin that varies between 1.00% and 2.25% depending on GCI, LLC’s total leverage ratio. Term Loan A borrowings that are SOFR loans bear interest at a per annum rate equal to the applicable SOFR plus a margin that varies between 2.00% and 3.25% depending on GCI, LLC’s total leverage ratio. Principal payments are due quarterly on the Term Loan A equal to 0.25% of the original principal amount, which may step up to 1.25% of the original principal amount of the Term Loan A depending on GCI, LLC’s secured leverage ratio. Each loan may be prepaid at any time and from time to time without penalty other than customary breakage costs. Any amounts prepaid on the revolving credit facility may be reborrowed. Prior to the amendment in June 2023, all rates indexed to SOFR were previously indexed to LIBOR. The Senior Credit Facility also has a commitment fee that accrues at a per annum rate between 0.375% and 0.500% on the daily unused amount of the revolving credit facility depending on GCI, LLC’s total leverage ratio. Prior to the Senior Credit Facility Eighth Amendment in October 2021, the borrowings under the Senior Credit Facility bore interest at either the alternate base rate or LIBOR (based on an interest period selected by GCI, LLC of one month, two months, three months or six months) at the election of GCI, LLC in each case plus a margin. The revolving credit facility borrowings that were alternate base rate loans bore interest at a per annum rate equal to the alternate base rate plus a margin that varied between 0.50% and 1.75% depending on GCI, LLC’s total leverage ratio. The revolving credit facility borrowings that were LIBOR loans bore interest at a per annum rate equal to the applicable LIBOR plus a margin that varied between 1.50% and 2.75% depending on GCI, LLC’s total leverage ratio. Term Loan B borrowings that were alternate base rate loans bore interest at a per annum rate equal to the alternate base rate plus a margin of 1.75% . Term Loan B borrowings that were LIBOR loans bore interest at a per annum rate equal to the applicable LIBOR plus a margin of 2.75% with a LIBOR floor of 0.75% . GCI, LLC’s First Lien Leverage Ratio (as defined in the Senior Credit Facility) may not exceed 4.00 to 1.00. The terms of the Senior Credit Facility include customary representations and warranties, customary affirmative and negative covenants and customary events of default. At any time after the occurrence of an event of default under the Senior Credit Facility, the lenders may, among other options, declare any amounts outstanding under the Senior Credit Facility immediately due and payable and terminate any commitment to make further loans under the Senior Credit Facility. The obligations under the Senior Credit Facility are secured by a security interest on substantially all of the assets of GCI, LLC and the subsidiary guarantors, as defined in the Senior Credit Facility, and on the stock of GCI Holdings. As of December 31, 2023, there was $244 million outstanding under the Term Loan A, $150 million outstanding under the revolving portion of the Senior Credit Facility and $3 million in letters of credit under the Senior Credit Facility, leaving $397 million available for borrowing. Wells Fargo Note Payable In connection with the closing of the Combination on December 18, 2020, the Company assumed GCI Holdings’ outstanding $6 million under its Wells Fargo Note Payable (as defined below). Outstanding borrowings on the Wells Fargo Note Payable were $5 million as of both December 31, 2023 and December 31, 2022. GCI Holdings issued a note to Wells Fargo that matures on July 15, 2029 and is payable in monthly installments of principal and interest (the "Wells Fargo Note Payable"). On May 1, 2023, the Wells Fargo Note Payable was amended to update the interest rate to reference SOFR instead of LIBOR. After this amendment, the interest rate is variable at SOFR plus 1.75%. Prior to the amendment, the interest rate was variable at one month LIBOR plus 2.25%. The note is subject to similar affirmative and negative covenants as the Senior Credit Facility. The obligations under the note are secured by a security interest and lien on the building purchased with the note. Debt Covenants GCI, LLC is subject to covenants and restrictions under its Senior Notes and Senior Credit Facility. The Company and GCI, LLC are in compliance with all debt maintenance covenants as of December 31, 2023. Five Year Maturities 2024 $ 3 2025 $ 3 2026 $ 1,613 2027 $ 238 2028 $ 601 Fair Value of Debt The fair value of the Senior Notes was $556 million at December 31, 2023 (Level 2). Due to the variable rate nature of the Margin Loan, Senior Credit Facility and Wells Fargo Note Payable, the Company believes that the carrying amount approximates fair value at December 31, 2023. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | (8) Leases In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. GCI Holdings determined that it is precluded from applying sales-leaseback accounting. GCI Holdings has entered into finance lease agreements with satellite providers for transponder capacity to transmit voice and data traffic in rural Alaska. GCI Holdings is also party to finance lease agreements for an office building and certain retail store locations. GCI Holdings also leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. If lease terms are modified, the ROU assets and operating lease liabilities are adjusted to reflect the updated future lease payments and changes in the incremental borrowing rate. The Company has leases with remaining lease terms that range from less than one year up to 27 years. Certain of the Company’s leases may include an option to extend the term of the lease with such options to extend ranging from 2 years up to 35 years. The Company also has the option to terminate certain of its leases early with such options to terminate ranging from as early as 30 days up to 14 years from December 31, 2023. The components of lease cost during the years ended December 31, 2023, 2022 and 2021 were as follows: Years ended December 31, 2023 2022 2021 amounts in millions Operating lease cost (1) $ 62 59 60 Finance lease cost Depreciation of leased assets $ 1 1 1 Total finance lease cost $ 1 1 1 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the consolidated financial statements. The remaining weighted-average lease term and the weighted-average discount rate were as follows: December 31, 2023 2022 2021 Weighted-average remaining lease term (years): Finance leases 2.5 3.5 4.5 Operating leases 4.1 3.9 4.2 Weighted-average discount rate: Finance leases 4.3 % 4.3 % 4.3 % Operating leases 7.7 % 6.0 % 4.0 % Supplemental balance sheet information related to leases was as follows: December 31, 2023 2022 amounts in millions Operating leases: Operating lease ROU assets, net (1) $ 105 114 Current operating lease liabilities (2) $ 45 45 Operating lease liabilities (3) 56 65 Total operating lease liabilities $ 101 110 Finance Leases: Property and equipment, at cost $ 8 4 Accumulated depreciation (2) (1) Property and equipment, net $ 6 3 Current obligations under finance leases (4) $ 1 1 Obligations under finance leases 1 2 Total finance lease liabilities $ 2 3 (1) Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. (2) Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. (3) Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. (4) Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. Supplemental cash flow information related to leases was as follows: Years ended December 31, 2023 2022 2021 amounts in millions Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 59 57 55 Financing cash outflows from finance leases $ 1 1 2 ROU assets obtained in exchange for lease obligations Operating leases $ 41 11 108 Future lease payments under finance leases, operating leases and tower obligations with initial terms of one year or more at December 31, 2023 consisted of the following: Finance Leases Operating Leases Tower Obligations amounts in millions 2024 $ 1 48 8 2025 1 24 8 2026 — 22 8 2027 — 8 8 2028 — 5 9 Thereafter — 13 91 Total payments 2 120 132 Less: imputed interest — 19 48 Total liabilities $ 2 101 84 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | (9) Income Taxes Income tax benefit (expense) consists of: Years ended December 31, 2023 2022 2021 amounts in millions Current: Federal $ (30) (222) (233) State and local (2) (1) — (32) (223) (233) Deferred: Federal (160) (51) 4 State and local (8) (3) 11 (168) (54) 15 Income tax benefit (expense) $ (200) (277) (218) Income tax benefit (expense) differs from the amounts computed by applying the applicable U.S. federal income tax rate of 21% as a result of the following: Years ended December 31, 2023 2022 2021 amounts in millions Computed expected tax benefit (expense) $ (186) (322) (200) State and local taxes, net of federal income taxes (8) (4) (8) Nontaxable equity contribution 4 41 2 Change in valuation allowance — 1 4 Sale of consolidated subsidiary 2 15 — Change in tax rate - other — — 14 Executive compensation (5) (7) (14) Litigation settlement — — (22) Other (7) (1) 6 Income tax (expense) benefit $ (200) (277) (218) For the year ended December 31, 2023, the significant reconciling items, as noted in the table above, are primarily due to state income taxes and certain non-deductible expenses. For the year ended December 31, 2022, the significant reconciling items, as noted in the table above, are primarily due to the nontaxable decrease in the fair value of the indemnification obligation owed to Qurate Retail and tax benefits from the sale of stock of a subsidiary. For the year ended December 31, 2021, the significant reconciling items, as noted in the table above, are primarily due to a non-deductible litigation settlement and non-deductible executive compensation, partially offset by tax benefits from a change in effective tax rate used to measure deferred taxes on certain Charter shares. The tax effects of temporary differences and tax attributes that give rise to significant portions of the deferred income tax assets and deferred income tax liabilities are presented below: December 31, 2023 2022 amounts in millions Deferred tax assets: Tax loss and tax credit carryforwards $ 36 32 Accrued stock-based compensation 15 16 Deferred revenue 27 20 Operating lease liabilities 28 31 Other accrued liabilities 7 28 Other future deductible amounts 35 41 Total deferred tax assets 148 168 Less: valuation allowance (1) (1) Net deferred tax assets 147 167 Deferred tax liabilities: Investments (1,871) (1,688) Fixed assets (196) (201) Intangible assets (262) (276) Debt (5) (10) Operating lease ROU assets (29) (32) Total deferred tax liabilities (2,363) (2,207) Net deferred tax asset (liability) $ (2,216) (2,040) The Company’s valuation allowance was unchanged in 2023. At December 31, 2023, Liberty Broadband had deferred tax assets of $36 million for federal and state net operating losses, interest expense carryforwards and tax credit carryforwards. Of the $36 million, $32 million are carryforwards with no expiration. The remaining carryforwards expire at certain future dates. These carryforwards are expected to be utilized prior to expiration, except for $1 million which based on current projections, may expire unused and accordingly are subject to a valuation allowance. The carryforwards that are expected to be utilized begin to expire in 2028. As of December 31, 2023, the Company had not recorded tax reserves related to unrecognized tax benefits for uncertain tax positions. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | (10) Stockholders' Equity Preferred Stock Liberty Broadband's preferred stock is issuable, from time to time, with such designations, preferences and relative participating, optional or other rights, qualifications, limitations or restrictions thereof, as shall be stated and expressed in a resolution or resolutions providing for the issue of such preferred stock adopted by Liberty Broadband's board of directors. Liberty Broadband Series A Cumulative Redeemable Preferred Stock (“Liberty Broadband Preferred Stock”) was issued as a result of the Combination on December 18, 2020. Each share of Series A Cumulative Redeemable Preferred Stock of GCI Liberty outstanding immediately prior to the closing of the Combination was converted into one share of newly issued Liberty Broadband Preferred Stock. The Company is required to redeem all outstanding shares of Liberty Broadband Preferred Stock out of funds legally available, at the liquidation price plus all unpaid dividends (whether or not declared) accrued from the most recent dividend payment date through the redemption date, on the first business day following March 8, 2039. There were 7,300,000 shares of Liberty Broadband Preferred Stock authorized and 7,183,812 shares issued and outstanding one The liquidation price is measured per share and shall mean the sum of (i) $25, plus (ii) an amount equal to all unpaid dividends (whether or not declared) accrued with respect to such share have been added to and then remain part of the liquidation price as of such date. The fair value of Liberty Broadband Preferred Stock of $203 million was recorded at the time of the Combination. The fair value of Liberty Broadband Preferred Stock as of December 31, 2023 was $158 million (Level 1). The holders of shares of Liberty Broadband Preferred Stock are entitled to receive, when and as declared by the Liberty Broadband board of directors, out of legally available funds, preferential dividends that accrue and cumulate as provided in the certificate of designations for the Liberty Broadband Preferred Stock. Dividends on each share of Liberty Broadband Preferred Stock accrue on a daily basis at a rate of 7.00% per annum of the liquidation price. Accrued dividends are payable quarterly on each dividend payment date, which is January 15, April 15, July 15, and October 15 of each year, commencing January 15, 2021. If Liberty Broadband fails to pay cash dividends on the Liberty Broadband Preferred Stock in full for any four consecutive or non-consecutive dividend periods then the dividend rate shall increase by 2.00% per annum of the liquidation price until cured. On December 13, 2023, the Company announced that its board of directors had declared a quarterly cash dividend of approximately $0.44 per share of Liberty Broadband Preferred Stock which was paid on January 16, 2024 to shareholders of record of the Liberty Broadband Preferred Stock at the close of business on January 2, 2024. Common Stock Liberty Broadband's Series A common stock (“LBRDA”) has one vote per share, Liberty Broadband's Series B common stock (“LBRDB”) has ten votes per share and Liberty Broadband’s Series C common stock (“LBRDK”) has no votes per share (except as otherwise required by applicable law). Each share of the Series B common stock is exchangeable at the option of the holder for one share of Series A common stock. All series of our common stock participate on an equal basis with respect to dividends and distributions. As of December 31, 2023, Liberty Broadband reserved 4 million shares of LBRDB and LBRDK common stock for issuance under exercise privileges of outstanding stock Awards. Purchases of Common Stock During the year ended December 31, 2023, the Company repurchased 3 million shares of LBRDA and LBRDK for aggregate cash consideration of $227 million. There were no repurchases of LBRDB during the year ended December 31, 2023. All of the foregoing shares obtained have been retired and returned to the status of authorized and available for issuance. As of December 31, 2023, the Company had approximately $1.8 billion available to be used for share repurchases under the Company’s share repurchase program. Exchange Agreement with Chairman On June 13, 2022, Liberty Broadband entered into an Exchange Agreement with its Chairman of the board of directors, John C. Malone, and a revocable trust of which Mr. Malone is the sole trustee and beneficiary (the “JM Trust”) (the “Exchange Agreement”), whereby, among other things, Mr. Malone agreed to an arrangement under which his aggregate voting power in the Company would not exceed 49% (the “Target Voting Power”) plus 0.5% (under certain circumstances). The Exchange Agreement provides for exchanges by the Company and Mr. Malone or the JM Trust of shares of LBRDB for shares of LBRDK in connection with certain events, including (i) any event that would result in a reduction in the outstanding votes that may be cast by holders of the Company’s voting securities or an increase of Mr. Malone’s beneficially-owned voting power in the Company (an “Accretive Event”), in each case, such that Mr. Malone’s voting power in the Company would exceed the Target Voting Power plus 0.5%; or (ii) from and after the occurrence of any Accretive Event, in connection with any event that would result in an increase in the outstanding votes that may be cast by holders of the Company’s voting securities or a decrease of Mr. Malone’s beneficially-owned voting power in the Company (a “Dilutive Event”), in each case, such that Mr. Malone’s voting power in the Company falls below the Target Voting Power less 0.5%. Additionally, the Exchange Agreement contains certain provisions with respect to fundamental events at the Company, meaning any combination, consolidation, merger, exchange offer, split-off, spin-off, rights offering or dividend, in each case, as a result of which holders of LBRDB are entitled to receive securities of the Company, securities of another person, property or cash, or a combination thereof. In connection with an Accretive Event, Mr. Malone or the JM Trust will be required to exchange with the Company shares of LBRDB (as exchanged, the “Exchanged Series B Shares”) for an equal number of shares of LBRDK (as exchanged, the “Exchanged Series C Shares”) so as to maintain Mr. Malone’s voting power as close as possible to, without exceeding, the Target Voting Power, on the terms and subject to the conditions of the Exchange Agreement. In connection with a Dilutive Event, Mr. Malone and the JM Trust may exchange the Exchanged Series C Shares with the Company for an equal number of shares of LBRDB equal to the lesser of (i) the number of shares of LBRDB which would maintain Mr. Malone’s voting power as close as possible to, without exceeding, the Target Voting Power and (ii) the number of Exchanged Series B Shares at such time, on the terms and subject to the conditions of the Exchange Agreement. Under the Exchange Agreement, the JM Trust exchanged 215,647 shares of LBRDB for the same number of LBRDK on June 13, 2022, and exchanged 211,255 shares of LBRDB for the same number of LBRDK on July 19, 2022. Additionally, the JM Trust exchanged 54,247 shares of LBRDB for the same number of LBRDK on January 23, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | (11) Stock-Based Compensation Included in Selling, general and administrative expenses in the accompanying consolidated statements of operations are $34 million, $37 million and $41 million of stock-based compensation during the years ended December 31, 2023, 2022 and 2021, respectively. Incentive Plans Liberty Broadband grants, to certain of its directors, employees and employees of its subsidiaries, restricted stock units (“RSUs”) and stock options to purchase shares of its common stock (collectively, "Awards"). The Company measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value (“GDFV”) of the Award and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award and re-measures the fair value of the Award at each reporting date. Pursuant to the Liberty Broadband 2019 Omnibus Incentive Plan, as amended, the Company may grant Awards to be made in respect of a maximum of 6.0 million shares of Liberty Broadband common stock. Awards generally vest over 1-5 years and have a term of 7-10 years. Liberty Broadband issues new shares upon exercise of equity awards. Grants During the years ended December 31, 2023, 2022 and 2021, Liberty Broadband granted 129 thousand, 136 thousand and 167 thousand options, respectively, to purchase shares of LBRDK to our Chief Executive Officer. Such options had a weighted average GDFV of $27.83, $39.10 and $40.05 per share, respectively, at the time they were granted and vested on December 29, 2023, December 30, 2022 and December 31, 2021, respectively. During the years ended December 31, 2023, 2022 and 2021, Liberty Broadband granted to its employees 407 thousand, 11 thousand and 30 thousand options, respectively, to purchase shares of LBRDK. Such options had a weighted average GDFV of $27.68, $30.43 and $40.61 per share, respectively, and vest between one During the years ended December 31, 2023, 2022 and 2021, Liberty Broadband granted 21 thousand, 24 thousand and 26 thousand options, respectively, to purchase shares of LBRDK to its non-employee directors with a weighted average GDFV of $27.73, $30.43 and $41.71 per share, respectively, which mainly cliff vest over a one year vesting period. During the years ended December 31, 2023, 2022 and 2021, Liberty Broadband granted 227 thousand, 227 thousand and 79 thousand time-based and performance-based RSUs, respectively, of LBRDK to its employees, employees of subsidiaries and non-employee directors. The RSUs had a weighted average GDFV of $84.02, $120.70 and $153.34 per share, respectively. The time-based RSUs generally vest between one There were no options to purchase shares of LBRDA or LBRDB granted during 2023, 2022 and 2021. The Company has calculated the GDFV for all of its equity classified awards and any subsequent re-measurement of its liability classified awards using the Black-Scholes Model. The Company estimates the expected term of the Awards based on historical exercise and forfeiture data. For grants made in 2023, 2022 and 2021, the range of expected terms was 5.1 to 5.3 years. The volatility used in the calculation for Awards is based on the historical volatility of Liberty Broadband common stock. For grants made in 2023, 2022 and 2021, the range of volatilities was 27.1% to 31.3%. The Company uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject option. Outstanding Awards The following table presents the number and weighted average exercise price (“WAEP”) of options to purchase Liberty Broadband common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the options. Weighted average remaining Aggregate contractual intrinsic LBRDK WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2023 3,602 $ 98.62 Granted 558 $ 77.98 Exercised (60) $ 69.76 Forfeited/Cancelled (37) $ 95.42 Outstanding at December 31, 2023 4,063 $ 96.23 3.1 $ 50 Exercisable at December 31, 2023 3,113 $ 88.02 2.4 $ 49 As of December 31, 2023, there were no outstanding options to purchase shares of LBRDA common stock. During the year ended December 31, 2023, Liberty Broadband had 69 thousand LBRDB options with a WAEP of $97.21 that were forfeited. During the years ended December 31, 2022 and 2021, the Company’s Chief Executive Officer exercised 37 thousand and 370 thousand LBRDB options at an exercise price of $97.21 per share for each exercise. Immediately following these exercises, the resulting LBRDB shares were exchanged for the same number of LBRDK shares pursuant to the terms of a stipulation and order where Mr. Maffei agreed to exchange LBRDB shares for LBRDK shares following the exercise of certain stock options. As of December 31, 2023, Liberty Broadband had 246 thousand LBRDB options outstanding and exercisable at a WAEP of $95.98, a weighted average remaining contractual life of 0.7 years and aggregate intrinsic value of zero. As of December 31, 2023, the total unrecognized compensation cost related to unvested Awards was approximately $38 million. Such amount will be recognized in the Company’s consolidated statements of operations over a weighted average period of approximately 1.6 years. As of December 31, 2023, Liberty Broadband reserved approximately 4 million shares of LBRDB and LBRDK for issuance under exercise privileges of outstanding stock options. Exercises The aggregate intrinsic value of all options exercised during the years ended December 31, 2023, 2022 and 2021 was $1 million, $3 million and $27 million, respectively. Restricted Stock and Restricted Stock Units The aggregate fair value of all LBRDA and LBRDK RSAs and RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $12 million, $18 million and $28 million, respectively. As of December 31, 2023, the Company had approximately 371 thousand unvested RSAs and RSUs of LBRDA and LBRDK held by certain directors, officers and employees of the Company with a weighted average GDFV of $101.09 per share. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | (12) Employee Benefit Plans Subsidiaries of the Company sponsor 401(k) plans, which provide their employees an opportunity to make contributions to a trust for investment. The Company’s subsidiaries make matching contributions to their plans based on a percentage of the amount contributed by employees. Employer cash contributions to all plans aggregated $11 million, $12 million and $12 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | (13) Commitments and Contingencies Guaranteed Service Levels Certain customers have guaranteed levels of service with varying terms. In the event the Company is unable to provide the minimum service levels, it may incur penalties or issue credits to customers. Charter and Liberty Broadband - Delaware Litigation In August 2015, a purported stockholder of Charter, Matthew Sciabacucchi, filed a lawsuit in the Delaware Court of Chancery, on behalf of a putative class of Charter stockholders, challenging the transactions involving Charter, Time Warner Cable Inc., Advance/Newhouse Partnership, and Liberty Broadband announced by Charter on May 26, 2015. The lawsuit, which named as defendants Liberty Broadband, Charter and the board of directors of Charter, alleged that the transactions resulted from breaches of fiduciary duty by Charter’s directors and that Liberty Broadband improperly benefited from the challenged transactions at the expense of other Charter stockholders. On January 12, 2023, the parties reached a tentative agreement to settle the lawsuit. The court approved the settlement at a fairness hearing on June 22, 2023 and Liberty Broadband paid approximately $38 million to Charter as a result of the settlement, which had been accrued as a current liability in the consolidated balance sheet and recorded as a litigation settlement expense within operating income in the fourth quarter of 2022. General Litigation The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying consolidated financial statements. Hollywood Firefighters’ Pension Fund, et al. v. GCI Liberty, Inc., et al. Hollywood Firefighters’ Pension Fund, et al. v. GCI Liberty, Inc., et al. GCI Liberty special committee, Mr. Malone and Mr. Maffei rendered the members of the GCI Liberty special committee not independent. During 2021 and in advance of the expenditure of significant time and costs, the parties began negotiations with the class of plaintiffs for a potential settlement of this action and entered into an agreement in principle to settle the litigation in return for a settlement payment of $110 million, which was recorded as a litigation settlement expense within operating income in the consolidated statements of operations. During the second half of 2021, the Company made a payment of $110 million in accordance with the settlement agreement and an additional $9 million mootness fee, which was also recorded as a litigation expense within operating income in the consolidated statements of operation. In addition, during the third quarter of 2021, the Company agreed to final settlement amounts with all five of its insurance carriers for insurance recoveries of approximately $24 million, which is recorded net of the litigation settlement expense on the consolidated statement of operations. Rural Health Care (“RHC”) Program FCC Rate Reduction. On October 20, 2020, the Bureau issued two separate letters approving the cost-based rural rates GCI Holdings historically applied when recognizing revenue for services provided to its RHC customers for the funding years that ended on June 30, 2019 and June 30, 2020. GCI Holdings collected approximately $175 million in accounts receivable relating to these two funding years during the year ended December 31, 2021. GCI Holdings also filed an Application for Review of these determinations. Subsequently, GCI identified rates for similar services provided by a competitor that would justify higher rates for certain GCI satellite services in the funding years that ended on June 30, 2018, June 30, 2019, and June 30, 2020. GCI submitted that information to the Bureau on September 7, 2021. On June 25, 2020, GCI Holdings submitted cost studies with respect to a number of its rates for services provided to its RHC customers for the funding year ended June 30, 2021, which require approval by the Bureau. GCI Holdings further updated those studies on November 12, 2020, to reflect the completion of the bidding season for that funding year. On May 24, 2021, the FCC approved the cost studies submitted by GCI Holdings for the funding year ended June 30, 2021. Subsequently, on August 16, 2021, GCI submitted a request for approval of rates for 17 additional sites, all of which the FCC approved. RHC Program Funding Cap. years, including the current year, this funding cap has not limited the amount of funding received by participants; however, management continues to monitor the funding cap and its potential impact on funding in future years. Enforcement Bureau and Related Inquiries. On May 28, 2020, GCI Holdings received a second letter of inquiry from the Enforcement Bureau in the same matter noted above. This second letter, which was in response to a voluntary disclosure made by GCI Holdings to the FCC, extended the scope of the original inquiry to also include various questions regarding compliance with the records retention requirements related to the (i) original inquiry and (ii) RHC Program. On December 17, 2020, GCI Holdings received a Subpoena Duces Tecum from the FCC’s Office of the Inspector General requiring production of documents from January 1, 2009 to the present related to a single RHC customer and related contracts, information regarding GCI Holdings’ determination of rural rates for a single customer, and to provide information regarding persons with knowledge of pricing practices generally. On April 21, 2021, representatives of the Department of Justice (“DOJ”) informed GCI Holdings that a qui tam action had been filed in the Western District of Washington arising from the subject matter under review by the Enforcement Bureau. The DOJ was investigating whether GCI Holdings submitted false claims and/or statements in connection with GCI’s participation in the FCC’s RHC Program. On July 14, 2021, the DOJ issued a Civil Investigative Demand with regard to the qui tam action. The FCC’s Enforcement Bureau and GCI Holdings held discussions regarding GCI Holdings potential RHC Program compliance issues related to certain of its contracts with its RHC customers for which GCI Holdings had previously recognized an estimated liability for a probable loss of approximately $12 million in 2019 for contracts that were deemed probable of not complying with the RHC Program rules. During the year ended December 31, 2022, GCI Holdings recorded an additional estimated settlement expense of $15 million relating to a settlement offer made by GCI Holdings resulting in a total estimated liability of $27 million. The DOJ and GCI Holdings held discussions regarding the qui tam action whereby the DOJ clarified that its investigation relates to the years from 2010 through 2019 and alleged that GCI Holdings had submitted false claims under the RHC Program during this time period. During the year ended December 31, 2022, GCI Holdings recorded a $14 million estimated settlement expense to reflect discussions and settlement offers that GCI Holdings made to the DOJ. Separately, during the third quarter of 2022, GCI Holdings became aware of possible RHC Program compliance issues relating to potential conflicts of interest identified in the historical competitive bidding process with respect to certain of its contracts with its RHC customers. GCI Holdings notified the FCC’s Enforcement Bureau of the potential compliance issues; however, the Company is unable to assess the ultimate outcome of the potential compliance issues and is unable to reasonably estimate any range of loss or possible loss. On May 10, 2023, GCI entered into a final settlement agreement with both the FCC and the DOJ to resolve all Enforcement Bureau and Related Inquiries discussed above except for the matter that was separately identified during the third quarter of 2022, which continues to remain outstanding. The settlement with the FCC and the DOJ resulted in a total cash payment of $41 million of which $27 million was paid to the FCC and $14 million was paid to the DOJ in 2023, which had been previously recorded as liabilities. Additionally, as part of the settlement with the FCC and the DOJ, GCI Holdings withdrew all of its open Applications for Review related to FCC rate reduction matters. Off-Balance Sheet Arrangements Liberty Broadband did not have any off-balance sheet arrangements, except for those matters discussed above, that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations, liquidity, capital expenditures or capital resources. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information | |
Segment Information | (14) Segment Information Liberty Broadband identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA or total assets and (B) those equity method affiliates whose share of earnings or losses represent 10% or more of Liberty Broadband’s annual pre-tax earnings (losses). Liberty Broadband evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue and Adjusted OIBDA. In addition, Liberty Broadband reviews nonfinancial measures such as subscriber growth. For segment reporting purposes, Liberty Broadband defines Adjusted OIBDA as revenue less operating expenses and selling, general and administrative expenses (excluding stock-based compensation). Liberty Broadband believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock based compensation, separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. Liberty Broadband generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. For the year ended December 31, 2023, Liberty Broadband has identified the following consolidated company and equity method investment as its reportable segments: ● GCI Holdings – a wholly owned subsidiary of the Company that provides a full range of data, wireless, video, voice, and managed services to residential, businesses, governmental entities, and educational and medical institutions primarily in Alaska. ● Charter – an equity method investment that is one of the largest providers of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers. Liberty Broadband’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies in the Company’s annual financial statements. We have included amounts attributable to Charter in the tables below. Although Liberty Broadband owns less than 100% of the outstanding shares of Charter, 100% of the Charter amounts are included in the schedule below and subsequently eliminated in order to reconcile the account totals to the Liberty Broadband consolidated financial statements. Performance Measures Years ended December 31, 2023 2022 2021 Adjusted Adjusted Adjusted Revenue OIBDA Revenue OIBDA Revenue OIBDA amounts in millions GCI Holdings $ 981 361 969 358 970 354 Charter 54,607 21,947 54,022 21,335 51,682 20,301 Corporate and other — (24) 6 (31) 18 (49) 55,588 22,284 54,997 21,662 52,670 20,606 Eliminate equity method affiliate (54,607) (21,947) (54,022) (21,335) (51,682) (20,301) Consolidated Liberty Broadband $ 981 337 975 327 988 305 Other Information December 31, 2023 December 31, 2022 Total Investments Capital Total Investments Capital assets in affiliates expenditures assets in affiliates expenditures amounts in millions GCI Holdings $ 3,340 — 222 3,378 — 181 Charter 147,193 — 11,115 144,523 — 9,376 Corporate and other 12,301 12,116 — 11,764 11,433 — 162,834 12,116 11,337 159,665 11,433 9,557 Eliminate equity method affiliate (147,193) — (11,115) (144,523) — (9,376) Consolidated Liberty Broadband $ 15,641 12,116 222 15,142 11,433 181 Revenue by Geographic Area Years ended December 31, 2023 2022 2021 amounts in millions United States $ 981 975 986 Other countries — — 2 $ 981 975 988 The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and earnings (loss) before income taxes: Years ended December 31, 2023 2022 2021 amounts in millions Consolidated segment Adjusted OIBDA $ 337 327 305 Stock-based compensation (34) (37) (41) Depreciation and amortization (230) (262) (267) Litigation settlement, net of recoveries — (67) (95) Operating income (loss) 73 (39) (98) Interest expense (206) (133) (117) Share of earnings (loss) of affiliates, net 1,155 1,326 1,194 Gain (loss) on dilution of investment in affiliate (60) (63) (102) Realized and unrealized gains (losses) on financial instruments, net (101) 334 67 Gain (loss) on dispositions, net — 179 12 Other, net 27 (70) (6) Earnings (loss) before income taxes $ 888 1,534 950 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of cash deposits held in global financial institutions. Cash equivalents consist of highly liquid investments with original maturities of three months or less at the time of acquisition. Cash that has restrictions upon its usage has been excluded from cash and cash equivalents. Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and corporate debt securities. The Company maintains some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are recorded at the invoiced amount and interest is not billed to the customer. For financed device contracts with customers, which is included within trade accounts receivable and other assets, the Company imputes interest and records the imputed interest as a reduction to the related accounts receivable. Interest is recognized over the financed device payment term. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in its existing accounts receivable. The Company bases its estimates on the aging of its accounts receivable balances, financial health of specific customers, regional economic data, changes in its collections process, regulatory requirements and its customers’ compliance with the Federal Communications Commission ("FCC") rules. The Company reviews its allowance for credit losses methodology at least annually. Depending upon the type of account receivable, the Company’s allowance is calculated using a pooled basis using a percentage of related accounts, or a specific identification method. When a specific identification method is used, potentially uncollectible accounts due to bankruptcy or other issues are reviewed individually for collectability. Write-offs of accounts receivable balances occur when the Company deems the receivables are uncollectible. The Company does not have any off-balance-sheet credit exposure related to its customers. A summary of activity in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 is as follows (amounts in millions): Additions Deductions Balance at Charged to beginning of costs and Write-offs net Balance at year expenses of recoveries end of year 2023 $ 4 5 (4) 5 2022 $ 4 4 (4) 4 2021 $ — 4 — 4 |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All of the Company’s derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. None of the Company’s derivatives are currently designated as hedges, as a result, changes in the fair value of the derivative are recognized in earnings. The fair value of certain of the Company’s derivative instruments are estimated using the Black Scholes Merton option-pricing model (“Black-Scholes model”). The Black-Scholes model incorporates a number of variables in determining such fair values, including expected volatility of the underlying security and an appropriate discount rate. The Company obtained volatility rates from pricing services based on the expected volatility of the underlying security over the remaining term of the derivative instrument. A discount rate was obtained at the inception of the derivative instrument and updated each reporting period, based on the Company’s estimate of the discount rate at which it could currently settle the derivative instrument. The Company considered its own credit risk as well as the credit risk of its counterparties in estimating the discount rate. Management judgment was required in estimating the Black-Scholes variables. The Company had no outstanding derivative instruments at December 31, 2023 or December 31, 2022. |
Investments in Equity Method Affiliates | Investments in Equity Method Affiliates For those investments in affiliates in which the Company has the ability to exercise significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the affiliate as they occur rather than as dividends or other distributions are received. Losses are limited to the extent of the Company’s investment in, advances to and commitments for the equity method investee. The Company determines the difference between the purchase price of the equity method investee and the underlying equity which results in an excess basis in the investment. This excess basis is allocated to the underlying assets and liabilities of the Company’s equity method investee through an acquisition accounting exercise and is allocated within memo accounts used for equity method accounting purposes. Depending on the applicable underlying assets, these amounts are either amortized over the applicable useful lives or determined to be indefinite lived. Changes in the Company’s proportionate share of the underlying equity of an equity method investee, which result from the issuance of additional equity securities by such equity method investee, are recognized in the statement of operations through the gain (loss) on dilution of investment in affiliate line item. We periodically evaluate our equity method investment to determine if decreases in fair value below our cost basis are other than temporary. If a decline in fair value is determined to be other than temporary, we are required to reflect such decline in our consolidated statements of operations. Other than temporary declines in fair value of our equity method investment would be included in share of earnings (losses) of affiliates in our consolidated statements of operations. The primary factors we consider in our determination of whether declines in fair value are other than temporary are the length of time that the fair value of the investment is below our carrying value; the severity of the decline; and the financial condition, operating performance and near term prospects of the equity method investee. In addition, we consider the reason for the decline in fair value, be it general market conditions, industry specific or equity method investee specific; analysts' ratings and estimates of 12 month share price targets for the equity method investee; changes in stock price or valuation subsequent to the balance sheet date; and our intent and ability to hold the investment for a period of time sufficient to allow for a recovery in fair value. As Liberty Broadband does not control the decision making process or business management practices of our affiliates accounted for using the equity method, Liberty Broadband relies on management of its affiliates to provide it with accurate financial information prepared in accordance with GAAP that the Company uses in the application of the equity method. In addition, Liberty Broadband relies on the audit reports that are provided by the affiliates’ independent auditors on the financial statements of such affiliate. The Company is not aware, however, of any errors in or possible misstatements of the financial information provided by its equity affiliates that would have a material effect on Liberty Broadband’s consolidated financial statements. See note 5 for additional discussion regarding our investment in Charter. |
Other Investments | Other Investments All marketable equity and debt securities held by the Company are carried at fair value, generally based on quoted market prices and changes in the fair value of such securities are reported in realized and unrealized gain (losses) on financial instruments in the accompanying consolidated statements of operations. The Company elected the measurement alternative (defined as the cost of the security, adjusted for changes in fair value when there are observable prices, less impairments) for its equity securities without readily determinable fair values. The Company performs a qualitative assessment each reporting period for its equity securities without readily determinable fair values to identify whether an equity security could be impaired. When the Company’s qualitative assessment indicates that an impairment could exist, it estimates the fair value of the investment and to the extent the fair value is less than the carrying value, it records the difference as an impairment in the consolidated statements of operations. |
Property and Equipment | Property and Equipment Property and equipment is stated at depreciated cost less impairments, if any. Construction costs of facilities are capitalized. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2023, that management intends to place in service when the assets are ready for their intended use. Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable. Net property and equipment consists of the following: December 31, 2023 2022 amounts in millions Land $ 16 16 Buildings (25 years) 108 105 Telephony transmission equipment and distribution facilities ( 5 832 810 Cable transmission equipment and distribution facilities ( 5 118 108 Support equipment and systems ( 3 112 106 Fiber optic cable systems ( 15 128 73 Other ( 2 72 52 Construction in progress 197 126 1,583 1,396 Accumulated depreciation (530) (385) Property and equipment, net $ 1,053 1,011 Depreciation of property and equipment under finance leases is included in depreciation and amortization expense in the consolidated statements of operations. Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $166 million, $195 million and $192 million, respectively. Repairs and maintenance are charged to expense as incurred. Expenditures for major renewals and betterments are capitalized. Accumulated depreciation is removed and gains or losses are recognized at the time of sales or other dispositions of property and equipment. Material interest costs incurred during the construction period of non-software capital projects are capitalized. Interest is capitalized in the period commencing with the first expenditure for a qualifying capital project and ending when the capital project is substantially complete and ready for its intended use. Capitalized interest costs for the years ended December 31, 2023, 2022 and 2021 were $7 million, $4 million and $2 million, respectively. |
Impairment of LongLived Assets | Impairment of Long-lived Assets The Company periodically reviews the carrying amounts of its property and equipment and its intangible assets (other than goodwill and indefinite-lived intangible assets) to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. If the carrying amount of the asset group is greater than the expected undiscounted cash flows to be generated by such asset group, including its ultimate disposition, an impairment adjustment is to be recognized. Such adjustment is measured by the amount that the carrying value of such asset groups exceeds its fair value. The Company generally measures fair value by considering sale prices for similar asset groups or by discounting estimated future cash flows using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of asset groups. Accordingly, actual results could vary significantly from such estimates. Asset groups to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred in Other liabilities in the consolidated balance sheets. When the liability is initially recorded, the Company capitalizes a cost by increasing the carrying amount of the related long-lived asset. In periods subsequent to initial measurement, changes in the liability for an asset retirement obligation resulting from revisions to either the timing or the amount of the original estimate of undiscounted cash flows are recognized. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, the Company either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. The majority of the Company’s asset retirement obligations are the estimated cost to remove telephony transmission equipment and support equipment from leased property. The asset retirement obligation is in Other liabilities in the consolidated balance sheets. Following is a reconciliation of the beginning and ending aggregate carrying amounts of the liability for asset retirement obligations (amounts in millions): Balance at December 31, 2021 $ 79 Liability incurred — Accretion expense 2 Liability settled — Balance at December 31, 2022 81 Liability incurred 1 Accretion expense 2 Liability settled — Balance at December 31, 2023 $ 84 Certain of the Company’s network facilities are on property that requires it to have a permit and the permit contains provisions requiring the Company to remove its network facilities in the event the permit is not renewed. The Company expects to continually renew its permits and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists that the Company would not be able to successfully renew a permit, which could result in it incurring significant expense in complying with restoration or removal provisions. |
Intangible Assets | Intangible Assets Internally used software, whether developed or purchased and installed as is, is capitalized and amortized using the straight-line method over an estimated useful life of three internal-use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. The capitalization of software requires judgment in determining when a project has reached the development stage. The Company has Software as a Service ("SaaS") arrangements which are accounted for as service agreements and are not capitalized. Internal and other third party costs for SaaS arrangements are capitalized or expensed in accordance with the internal use software guidance as discussed in the preceding paragraph. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment upon certain triggering events. Intangible assets with estimable useful lives are being amortized over three Goodwill, cable certificates (certificates of convenience and public necessity) and other intangible assets with indefinite useful lives are not amortized, but instead are tested for impairment at least annually. Cable certificates represent agreements or authorizations with government entities that allow access to homes in cable service areas, including the future economic benefits of the right to solicit and service potential customers and the right to deploy and market new services to potential customers. Goodwill represents the excess of cost over fair value of net assets acquired in connection with a business acquisition. The Company’s annual impairment assessment of its indefinite-lived intangible assets is performed during the fourth quarter of each year. The accounting guidance allows entities the option to perform a qualitative impairment test for goodwill. The entity may resume performing the quantitative assessment in any subsequent period. In evaluating goodwill on a qualitative basis, the Company reviews the business performance of each reporting unit and evaluates other relevant factors as identified in the relevant accounting guidance to determine whether it was more likely than not that an indicated impairment exists for any of its reporting units. The Company considers whether there are any negative macroeconomic conditions, industry specific conditions, market changes, increased competition, increased costs in doing business, management challenges, the legal environments and how these factors might impact company specific performance in future periods. As part of the analysis, the Company also considers fair value determinations for certain reporting units that have been made at various points throughout the current year and prior year for other purposes. If based on the qualitative analysis it is more likely than not that an impairment exists, the Company performs the quantitative impairment test. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit to its carrying value and to the extent the carrying value is greater than the fair value, the difference is recorded as an impairment in the consolidated statements of operations. Developing estimates of fair value requires significant judgments, including making assumptions about appropriate discount rates, perpetual growth rates, relevant comparable market multiples, public trading prices and the amount and timing of expected future cash flows. The cash flows employed in the Company’s valuation analyses are based on management’s best estimates considering current marketplace factors and risks as well as assumptions of growth rates in future years. There is no assurance that actual results in the future will approximate these forecasts. The accounting guidance also permits entities to first perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset, other than goodwill, is impaired. The accounting guidance also allows entities the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to the quantitative impairment test. The entity may resume performing the qualitative assessment in any subsequent period. If the qualitative assessment supports that it is more likely than not that the carrying value of the Company’s indefinite-lived intangible assets, other than goodwill, exceeds its fair value, then a quantitative assessment is performed. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Revenue Recognition | Revenue Recognition GCI Holdings Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. GCI Holdings recognizes revenue when it satisfies a performance obligation by transferring control of a product or service to a customer. Substantially all of GCI Holdings’ revenue is earned from services transferred over time. If at contract inception, GCI Holdings determines the time period between when it transfers a promised good or service to a customer and when the customer pays for that good or service is one year or less, it does not adjust the promised amount of consideration for the effects of a significant financing component. Certain of GCI Holdings’ customers have guaranteed levels of service. If an interruption in service occurs, GCI Holdings does not recognize revenue for any portion of the monthly service fee that will be refunded to the customer or not billed to the customer due to these service level agreements. Taxes assessed by a governmental authority that are both imposed on, and concurrent with, a specific revenue-producing transaction that are collected by GCI Holdings from a customer, are excluded from revenue from contracts with customers. Nature of Services and Products Data Data revenue is generated by providing data network access, high-speed internet services, and product sales. Monthly service revenue for data network access and high-speed internet services is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Internet service excess usage revenue is recognized when the services are provided. GCI Holdings recognizes revenue for product sales when a customer takes possession of the equipment. GCI Holdings provides telecommunications engineering services on a time and materials basis. Revenue is recognized for these services as-invoiced. Wireless Wireless revenue is generated by providing access to, and usage of GCI Holdings’ network by consumer, business, and wholesale carrier customers. Additionally, GCI Holdings generates revenue by selling wireless equipment such as handsets and tablets. In general, access revenue is billed in advance, recorded as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Equipment sales revenue associated with the sale of wireless devices and accessories is generally recognized when the products are delivered to and control transfers to the customer. Consideration received from the customer is allocated to the service and products based on stand-alone selling prices when purchased together. New and existing wireless customers have the option to purchase certain wireless devices in installments over a period of up to 36 months. Under the Upgrade Now program, participating customers have the right to trade-in the original equipment for a new device after making the equivalent of 12 monthly installment payments, provided their handset is in good working condition. Upon upgrade, the outstanding balance of the wireless equipment installment plan is exchanged for the used handset. GCI Holdings accounts for this upgrade option as a right of return with a reduction of Revenue and Operating expense for handsets expected to be upgraded based on historical data. Other Other revenue consists of video and voice revenue. as deferred revenue on the balance sheet, and recognized as the associated services are provided to the customer. Usage based fees are recognized as services are provided. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations as customers purchase multiple services and products within those contracts. For such arrangements, revenue is allocated to each performance obligation based on the relative standalone selling price for each service or product within the contract. Standalone selling prices are generally determined based on the prices charged to customers. Significant Judgments Some contracts with customers include variable consideration and may require significant judgment to determine the total transaction price, which impacts the amount and timing of revenue recognized. GCI Holdings uses historical customer data to estimate the amount of variable consideration included in the total transaction price and reassess its estimate at each reporting period. Any change in the total transaction price due to a change in the estimated variable consideration is allocated to the performance obligations on the same basis as at contract inception. Any portion of a change in transaction price that is allocated to a satisfied or partially satisfied performance obligation is recognized as revenue (or a reduction in revenue) in the period of the transaction price change. Variable consideration has been constrained to reduce the likelihood of a significant revenue reversal. Often contracts with customers include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is required to determine the standalone selling price for each distinct performance obligation. Services and products are generally sold separately, which helps establish standalone selling price for services and products GCI Holdings provides. Remaining Performance Obligations The Company expects to recognize revenue in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023 of $278 million in 2024 2025 2026 2027 2028 The Company applies certain practical expedients as permitted and does not disclose information about remaining performance obligations that have original expected durations of one year or less, information about revenue remaining from usage based performance obligations that are recognized over time as-invoiced, or variable consideration allocated to wholly unsatisfied performance obligations. Contract Balances The Company had receivables of $181 million and $189 million at December 31, 2023 and 2022, respectively, the long-term portion of which are included in Other assets, net. The Company had deferred revenue of $43 million and $33 million at December 31, 2023 and 2022, respectively, the long-term portion of which are included in Other liabilities. The receivables and deferred revenue are only from contracts with customers. GCI Holdings’ customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in the accompanying consolidated statements of operations as the services are provided. Changes in the contract liability balance for the Company during 2023 was not materially impacted by other factors. Assets Recognized from the Costs to Obtain a Contract with a Customer Management expects that incremental commission fees paid to intermediaries as a result of obtaining customer contracts are recoverable and therefore the Company capitalizes them as contract costs. Capitalized commission fees are amortized based on the transfer of goods or services to which the assets relate which typically range from two The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in Selling, general, and administrative expenses. Revenue from contracts with customers, classified by customer type and significant service offerings, is as follows: Years ended December 31, 2023 2022 2021 amounts in millions GCI Holdings Consumer Revenue Data $ 233 231 214 Wireless 143 143 134 Other 41 55 86 Business Revenue Data 424 392 364 Wireless 45 47 68 Other 18 24 27 Lease, grant, and revenue from subsidies 77 77 77 Total GCI Holdings 981 969 970 Corporate and other — 6 18 Total $ 981 975 988 |
Advertising Costs | Advertising Costs Advertising costs generally are expensed as incurred. Advertising expense aggregated $5 million, $4 million and $5 million for the years ended December 31, 2023, 2022 and 2021, respectively. Advertising costs are reflected in the Selling, general and administrative, including stock-based compensation line item in our consolidated statements of operations. |
StockBased Compensation | Stock-Based Compensation As more fully described in note 11, Liberty Broadband has granted to its directors, employees and employees of certain of its subsidiaries, restricted stock and stock options to purchase shares of Liberty Broadband common stock (collectively, “Awards”). Liberty Broadband measures the cost of employee services received in exchange for an equity classified Award (such as stock options and restricted stock) based on the grant-date fair value of the Award and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). Liberty Broadband measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award and remeasures the fair value of the Award at each reporting date. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts and income tax bases of assets and liabilities and the expected benefits of utilizing net operating loss and tax credit carryforwards. The deferred tax assets and liabilities are calculated using enacted tax rates in effect for each taxing jurisdiction in which the Company operates for the year in which those temporary differences are expected to be recovered or settled. Net deferred tax assets are then reduced by a valuation allowance if the Company believes it more likely than not that such net deferred tax assets will not be realized. We consider all relevant factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as assessing available tax planning strategies. The effect on deferred tax assets and liabilities of an enacted change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates. When the tax law requires interest to be paid on an underpayment of income taxes, the Company recognizes interest expense from the first period the interest would begin accruing according to the relevant tax law. Such interest expense is included in Interest expense in the accompanying consolidated statements of operations. Any accrual of penalties related to underpayment of income taxes on uncertain tax positions is included in Other, net in the accompanying consolidated statements of operations. We recognize in our consolidated financial statements the impact of a tax position, if that position is more likely than not to be sustained upon an examination, based on the technical merits of the position. |
Certain Risks and Concentrations | Certain Risks and Concentrations GCI Holdings offers wireless and wireline telecommunication services, data services, video services, and managed services to customers primarily throughout Alaska. Because of this geographic concentration, growth of GCI Holdings’ business and operations depends upon economic conditions in Alaska. GCI Holdings receives support from each of the various Universal Service Fund ("USF") programs: rural health care, schools and libraries, high-cost, and lifeline. The programs are subject to change by regulatory actions taken by the FCC or legislative actions, therefore, changes to the programs could result in a material decrease in revenue that the Company has recorded. Historical revenue recognized from the programs was 39%, 35% and 32% of GCI Holdings’ revenue for the years ended December 31, 2023, 2022 and 2021, respectively. The Company had USF net receivables of $102 million at December 31, 2023. See note 13 for more information regarding the rural health care receivables. |
Loss Contingencies | Loss Contingencies Periodically, we review the status of all significant outstanding matters to assess any potential financial exposure. When it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment is required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements. |
Comprehensive Earnings (Loss) | Comprehensive Earnings (Loss) Comprehensive earnings (loss) consists of net earnings (loss), comprehensive earnings (loss) attributable to debt credit risk adjustments and the Company’s share of the comprehensive earnings (loss) of our equity method affiliate. |
Earnings Attributable to Liberty Broadband Stockholders per Common Share | Earnings Attributable to Liberty Broadband Stockholders per Common Share Basic earnings (loss) per common share (“EPS”) is computed by dividing net earnings (loss) attributable to Liberty Broadband stockholders by the weighted average number of common shares outstanding (“WASO”) for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Excluded from diluted EPS for the years ended December 31, 2023, 2022 and 2021 are approximately 2 million, 2 million and 1 million potential common shares, respectively, because their inclusion would have been antidilutive. Years ended December 31, 2023 2022 2021 number of shares in millions Basic WASO 146 157 185 Potentially dilutive shares (1) 1 1 1 Diluted WASO 147 158 186 (1) Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. |
Reclassifications | Reclassifications Reclassifications have been made to the prior years’ consolidated financial statements to conform to the classifications used in the current year. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) the application of the equity method of accounting for its affiliates, (ii) non-recurring fair value measurements of non-financial instruments and (iii) accounting for income taxes to be its most significant estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures |
Government Assistance | Government Assistance In current and prior years, the Company has been awarded, as either the recipient or subrecipient, federal government grants to construct broadband infrastructure to unserved and underserved communities in rural Alaska. During the years ended December 31, 2023 and 2022, the Company received approximately $6 million and $25 million, respectively, for grants awarded in current and/or prior years. For accounting purposes, these grants are accounted for using a grant accounting model by analogy to International Accounting Standard 20, Accounting for Government Grants and Disclosure of Government Assistance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of activity in the allowance for credit losses | A summary of activity in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 is as follows (amounts in millions): Additions Deductions Balance at Charged to beginning of costs and Write-offs net Balance at year expenses of recoveries end of year 2023 $ 4 5 (4) 5 2022 $ 4 4 (4) 4 2021 $ — 4 — 4 |
Schedule of Net Property and Equipment | December 31, 2023 2022 amounts in millions Land $ 16 16 Buildings (25 years) 108 105 Telephony transmission equipment and distribution facilities ( 5 832 810 Cable transmission equipment and distribution facilities ( 5 118 108 Support equipment and systems ( 3 112 106 Fiber optic cable systems ( 15 128 73 Other ( 2 72 52 Construction in progress 197 126 1,583 1,396 Accumulated depreciation (530) (385) Property and equipment, net $ 1,053 1,011 |
Reconciliation of Asset Retirement Obligations | Following is a reconciliation of the beginning and ending aggregate carrying amounts of the liability for asset retirement obligations (amounts in millions): Balance at December 31, 2021 $ 79 Liability incurred — Accretion expense 2 Liability settled — Balance at December 31, 2022 81 Liability incurred 1 Accretion expense 2 Liability settled — Balance at December 31, 2023 $ 84 |
Revenue from Contracts with Customers by Customer Type and Service Offerings | Years ended December 31, 2023 2022 2021 amounts in millions GCI Holdings Consumer Revenue Data $ 233 231 214 Wireless 143 143 134 Other 41 55 86 Business Revenue Data 424 392 364 Wireless 45 47 68 Other 18 24 27 Lease, grant, and revenue from subsidies 77 77 77 Total GCI Holdings 981 969 970 Corporate and other — 6 18 Total $ 981 975 988 |
Schedule of Weighted Average Number of Shares | Years ended December 31, 2023 2022 2021 number of shares in millions Basic WASO 146 157 185 Potentially dilutive shares (1) 1 1 1 Diluted WASO 147 158 186 (1) Potentially dilutive shares are excluded from the computation of diluted EPS during periods in which losses are reported since the result would be antidilutive. |
Supplemental Disclosures to C_2
Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Disclosures to Consolidated Statements of Cash Flows | |
Schedule of supplemental cash flow disclosure | Years ended December 31, 2023 2022 2021 amounts in millions Cash paid for interest, net of amounts capitalized $ 211 137 125 Cash paid for taxes, net $ 49 266 238 Noncash activity: Property and equipment expenditures incurred but not yet paid $ 15 22 19 |
Schedule of reconciliation of cash and cash equivalents and restricted cash | Years ended December 31, 2023 2022 2021 amounts in millions Cash and cash equivalents $ 158 375 191 Restricted cash included in other current assets 16 24 15 Restricted cash included in other long-term assets 2 1 — Total cash and cash equivalents and restricted cash at end of period $ 176 400 206 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | December 31, 2023 December 31, 2022 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 78 78 — 288 288 — Indemnification obligation $ — — — 50 — 50 Exchangeable senior debentures $ 1,255 — 1,255 1,373 — 1,373 |
Schedule of realized and unrealized gains (losses) on financial instruments | Years ended December 31, 2023 2022 2021 amounts in millions Indemnification obligation $ 5 273 21 Exchangeable senior debentures (1) (106) 61 46 $ (101) 334 67 (1) The Company has elected to account for its exchangeable senior debentures using the fair value option. Changes in the fair value of the exchangeable senior debentures recognized in the consolidated statements of operations are primarily due to market factors driven by changes in the fair value of the underlying shares into which the debt is exchangeable. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive income. The change in the fair value of the exchangeable senior debentures attributable to changes in the instrument specific credit risk before tax was a gain of $55 million, a loss of $7 million and a loss of $2 million for the years ended December 31, 2023, 2022 and 2021, respectively. The cumulative change was a gain of $55 million as of December 31, 2023. |
Investment in Charter Account_2
Investment in Charter Accounted for Using the Equity Method (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment in Charter Accounted for Using the Equity Method | |
Schedule of investment stock sales | Years ended December 31, 2023 2022 2021 dollar amounts in millions Number of Charter Class A shares sold to Charter 950,721 6,168,174 6,077,664 Amount of Charter Class A shares sold to Charter $ 394 3,034 4,179 |
Schedule of allocation of excess basis within memo accounts used for equity accounting purposes | The excess basis has been allocated within memo accounts used for equity method accounting purposes as follows (amounts in millions): Years ended December 31, 2023 2022 Property and equipment, net $ 403 524 Customer relationships, net 2,049 2,230 Franchise fees 3,843 3,809 Trademarks 29 29 Goodwill 4,049 3,975 Debt (317) (450) Deferred income tax liability (1,472) (1,505) $ 8,584 8,612 |
Summary of financial information for Charter | Consolidated Balance Sheets December 31, December 31, 2023 2022 amounts in millions Current assets $ 4,132 4,017 Property and equipment, net 39,520 36,039 Goodwill 29,668 29,563 Intangible assets, net 69,141 70,135 Other assets 4,732 4,769 Total assets $ 147,193 144,523 Current liabilities $ 13,214 12,065 Deferred income taxes 18,954 19,058 Long-term debt 95,777 96,093 Other liabilities 4,530 4,758 Equity 14,718 12,549 Total liabilities and shareholders' equity $ 147,193 144,523 Consolidated Statements of Operations Years ended December 31, 2023 2022 2021 amounts in millions Revenue $ 54,607 54,022 51,682 Cost and expenses: Operating costs and expenses (excluding depreciation and amortization) 33,405 32,876 31,482 Depreciation and amortization 8,696 8,903 9,345 Other operating (income) expense, net (53) 281 329 42,048 42,060 41,156 Operating income 12,559 11,962 10,526 Interest expense, net (5,188) (4,556) (4,037) Other income (expense), net (517) 56 (101) Income tax (expense) benefit (1,593) (1,613) (1,068) Net earnings (loss) 5,261 5,849 5,320 Less: Net income attributable to noncontrolling interests (704) (794) (666) Net Income (loss) attributable to Charter shareholders $ 4,557 5,055 4,654 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets | |
Schedule of Goodwill | Corporate and GCI Holdings other Total amounts in millions Balance at December 31, 2021 $ 755 7 762 Dispositions — (7) (7) Balance at December 31, 2022 755 — 755 Balance at December 31, 2023 $ 755 — 755 |
Schedule of Intangible Assets Subject to Amortization, net | December 31, 2023 December 31, 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount amounts in millions Customer relationships $ 515 (132) 383 515 (91) 424 Other amortizable intangible assets 156 (78) 78 147 (55) 92 Total $ 671 (210) 461 662 (146) 516 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for amortizable intangible assets for each of the five succeeding fiscal years is estimated to be (amounts in millions): 2024 $ 58 2025 $ 53 2026 $ 51 2027 $ 48 2028 $ 47 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt | |
Schedule of debt | Outstanding principal Carrying value December 31, December 31, December 31, 2023 2023 2022 amounts in millions Margin Loan Facility $ 1,460 1,460 1,400 3.125% Exchangeable Senior Debentures due 2053 1,265 1,255 — 1.25% Exchangeable Senior Debentures due 2050 — — 798 2.75% Exchangeable Senior Debentures due 2050 — — 560 1.75% Exchangeable Senior Debentures due 2046 — — 15 Senior notes 600 623 628 Senior credit facility 394 394 397 Wells Fargo note payable 5 5 5 Deferred financing costs (1) (2) Total debt $ 3,724 3,736 3,801 Debt classified as current (3) (1,376) Total long-term debt $ 3,733 2,425 |
Schedule of annual principal maturities of debt | The annual principal maturities of debt, based on stated maturity dates, for each of the next five years is as follows (amounts in millions): 2024 $ 3 2025 $ 3 2026 $ 1,613 2027 $ 238 2028 $ 601 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of components of lease cost and remaining weighted-average lease term and the weighted-average discount rate | Years ended December 31, 2023 2022 2021 amounts in millions Operating lease cost (1) $ 62 59 60 Finance lease cost Depreciation of leased assets $ 1 1 1 Total finance lease cost $ 1 1 1 (1) Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the consolidated financial statements. December 31, 2023 2022 2021 Weighted-average remaining lease term (years): Finance leases 2.5 3.5 4.5 Operating leases 4.1 3.9 4.2 Weighted-average discount rate: Finance leases 4.3 % 4.3 % 4.3 % Operating leases 7.7 % 6.0 % 4.0 % Years ended December 31, 2023 2022 2021 amounts in millions Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 59 57 55 Financing cash outflows from finance leases $ 1 1 2 ROU assets obtained in exchange for lease obligations Operating leases $ 41 11 108 |
Schedule of supplemental balance sheet information related to leases | December 31, 2023 2022 amounts in millions Operating leases: Operating lease ROU assets, net (1) $ 105 114 Current operating lease liabilities (2) $ 45 45 Operating lease liabilities (3) 56 65 Total operating lease liabilities $ 101 110 Finance Leases: Property and equipment, at cost $ 8 4 Accumulated depreciation (2) (1) Property and equipment, net $ 6 3 Current obligations under finance leases (4) $ 1 1 Obligations under finance leases 1 2 Total finance lease liabilities $ 2 3 (1) Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. (2) Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. (3) Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. (4) Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. |
Schedule of future lease payments under finance leases | Finance Leases Operating Leases Tower Obligations amounts in millions 2024 $ 1 48 8 2025 1 24 8 2026 — 22 8 2027 — 8 8 2028 — 5 9 Thereafter — 13 91 Total payments 2 120 132 Less: imputed interest — 19 48 Total liabilities $ 2 101 84 |
Schedule of future lease payments under operating leases | Finance Leases Operating Leases Tower Obligations amounts in millions 2024 $ 1 48 8 2025 1 24 8 2026 — 22 8 2027 — 8 8 2028 — 5 9 Thereafter — 13 91 Total payments 2 120 132 Less: imputed interest — 19 48 Total liabilities $ 2 101 84 |
Schedule of future lease payments under tower obligations | Finance Leases Operating Leases Tower Obligations amounts in millions 2024 $ 1 48 8 2025 1 24 8 2026 — 22 8 2027 — 8 8 2028 — 5 9 Thereafter — 13 91 Total payments 2 120 132 Less: imputed interest — 19 48 Total liabilities $ 2 101 84 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of income tax benefit (expense) | Years ended December 31, 2023 2022 2021 amounts in millions Current: Federal $ (30) (222) (233) State and local (2) (1) — (32) (223) (233) Deferred: Federal (160) (51) 4 State and local (8) (3) 11 (168) (54) 15 Income tax benefit (expense) $ (200) (277) (218) |
Schedule of income tax benefit (expense) reconciliation to the effective tax rate | Years ended December 31, 2023 2022 2021 amounts in millions Computed expected tax benefit (expense) $ (186) (322) (200) State and local taxes, net of federal income taxes (8) (4) (8) Nontaxable equity contribution 4 41 2 Change in valuation allowance — 1 4 Sale of consolidated subsidiary 2 15 — Change in tax rate - other — — 14 Executive compensation (5) (7) (14) Litigation settlement — — (22) Other (7) (1) 6 Income tax (expense) benefit $ (200) (277) (218) |
Schedule of deferred tax assets and liabilities | December 31, 2023 2022 amounts in millions Deferred tax assets: Tax loss and tax credit carryforwards $ 36 32 Accrued stock-based compensation 15 16 Deferred revenue 27 20 Operating lease liabilities 28 31 Other accrued liabilities 7 28 Other future deductible amounts 35 41 Total deferred tax assets 148 168 Less: valuation allowance (1) (1) Net deferred tax assets 147 167 Deferred tax liabilities: Investments (1,871) (1,688) Fixed assets (196) (201) Intangible assets (262) (276) Debt (5) (10) Operating lease ROU assets (29) (32) Total deferred tax liabilities (2,363) (2,207) Net deferred tax asset (liability) $ (2,216) (2,040) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Series C common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock awards activity | Weighted average remaining Aggregate contractual intrinsic LBRDK WAEP life value (in thousands) (in years) (in millions) Outstanding at January 1, 2023 3,602 $ 98.62 Granted 558 $ 77.98 Exercised (60) $ 69.76 Forfeited/Cancelled (37) $ 95.42 Outstanding at December 31, 2023 4,063 $ 96.23 3.1 $ 50 Exercisable at December 31, 2023 3,113 $ 88.02 2.4 $ 49 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information | |
Schedule of performance measures | Performance Measures Years ended December 31, 2023 2022 2021 Adjusted Adjusted Adjusted Revenue OIBDA Revenue OIBDA Revenue OIBDA amounts in millions GCI Holdings $ 981 361 969 358 970 354 Charter 54,607 21,947 54,022 21,335 51,682 20,301 Corporate and other — (24) 6 (31) 18 (49) 55,588 22,284 54,997 21,662 52,670 20,606 Eliminate equity method affiliate (54,607) (21,947) (54,022) (21,335) (51,682) (20,301) Consolidated Liberty Broadband $ 981 337 975 327 988 305 |
Schedule of OIBDA By Segment | Other Information December 31, 2023 December 31, 2022 Total Investments Capital Total Investments Capital assets in affiliates expenditures assets in affiliates expenditures amounts in millions GCI Holdings $ 3,340 — 222 3,378 — 181 Charter 147,193 — 11,115 144,523 — 9,376 Corporate and other 12,301 12,116 — 11,764 11,433 — 162,834 12,116 11,337 159,665 11,433 9,557 Eliminate equity method affiliate (147,193) — (11,115) (144,523) — (9,376) Consolidated Liberty Broadband $ 15,641 12,116 222 15,142 11,433 181 |
Schedule of revenue by geographic area | Years ended December 31, 2023 2022 2021 amounts in millions United States $ 981 975 986 Other countries — — 2 $ 981 975 988 |
Schedule of reconciliation of segment Adjusted OIBDA to earnings (loss) before income taxes | Years ended December 31, 2023 2022 2021 amounts in millions Consolidated segment Adjusted OIBDA $ 337 327 305 Stock-based compensation (34) (37) (41) Depreciation and amortization (230) (262) (267) Litigation settlement, net of recoveries — (67) (95) Operating income (loss) 73 (39) (98) Interest expense (206) (133) (117) Share of earnings (loss) of affiliates, net 1,155 1,326 1,194 Gain (loss) on dilution of investment in affiliate (60) (63) (102) Realized and unrealized gains (losses) on financial instruments, net (101) 334 67 Gain (loss) on dispositions, net — 179 12 Other, net 27 (70) (6) Earnings (loss) before income taxes $ 888 1,534 950 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
May 03, 2023 | May 02, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash released from escrow related to dispositions | $ 23 | |||||
Gain (loss) on dispositions, net (note 1) | $ 179 | $ 12 | ||||
Skyhook | Disposal Group | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sales on proceeds | $ 194 | |||||
Cash released from escrow related to dispositions | $ 23 | |||||
Gain (loss) on dispositions, net (note 1) | $ 179 | |||||
Disposal group revenue | 6 | 18 | ||||
Disposal group net income (loss) | $ 4 | |||||
Maximum | Skyhook | Disposal Group | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group net income (loss) | $ 1 |
Basis of Presentation - Spin-Of
Basis of Presentation - Spin-Off Arrangements (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liberty | |||
Related Party Transaction [Line Items] | |||
Reimbursable amount | $ 7 | $ 10 | |
Qurate Retail | |||
Related Party Transaction [Line Items] | |||
Tax sharing receivable | $ 16 | $ 7 | |
CEO | Liberty | |||
Related Party Transaction [Line Items] | |||
CEO compensation allocation percentage | 23% | 33% | 37% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 4 | $ 4 | |
Charged to costs and expenses | 5 | 4 | $ 4 |
Write-offs net of recoveries | (4) | (4) | |
Balance at end of year | 5 | 4 | $ 4 |
Derivative Instruments and Hedging Activities | |||
Derivative instruments | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 1,583 | $ 1,396 | |
Accumulated depreciation | (530) | (385) | |
Property and equipment, net | 1,053 | 1,011 | |
Depreciation expense | 166 | 195 | $ 192 |
Capitalized interest costs | 7 | 4 | $ 2 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 16 | 16 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 25 years | ||
Property and equipment, gross | $ 108 | 105 | |
Telephony transmission equipment and distribution facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 832 | 810 | |
Telephony transmission equipment and distribution facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 5 years | ||
Telephony transmission equipment and distribution facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 20 years | ||
Cable transmission equipment and distribution facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 118 | 108 | |
Cable transmission equipment and distribution facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 5 years | ||
Cable transmission equipment and distribution facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 30 years | ||
Support equipment and systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 112 | 106 | |
Support equipment and systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 3 years | ||
Support equipment and systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 20 years | ||
Fiber optic cable systems | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 128 | 73 | |
Fiber optic cable systems | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 15 years | ||
Fiber optic cable systems | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 25 years | ||
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 72 | 52 | |
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 2 years | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining useful lives of property and equipment | 20 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 197 | $ 126 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 81 | $ 79 |
Liability incurred | 1 | |
Accretion expense | 2 | 2 |
Balance at end of period | $ 84 | $ 81 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Intangible Assets (Details) | Dec. 31, 2023 |
Minimum | |
Non-amortizable intangible assets | |
Useful life | 3 years |
Maximum | |
Non-amortizable intangible assets | |
Useful life | 16 years |
Weighted Average | |
Non-amortizable intangible assets | |
Useful life | 13 years |
Internally Used Software | Minimum | |
Non-amortizable intangible assets | |
Useful life | 3 years |
Internally Used Software | Maximum | |
Non-amortizable intangible assets | |
Useful life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2023 payment | |
Summary of Significant Accounting Policies | |
Equipment installment plan period | 36 months |
Number Of Installment Plan Payments | 12 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 278 |
Remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 143 |
Remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 76 |
Remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 26 |
Remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 26 |
Remaining performance obligation expected timing of satisfaction period | 1 year |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Significant Accounting Policies | ||
Receivables | $ 181 | $ 189 |
Deferred revenue | $ 43 | $ 33 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Assets Recognized from the Costs to Obtain a Contract with a Customer (Details) | Dec. 31, 2023 |
Minimum | |
Capitalized Contract Cost [Line Items] | |
Amortization period | 2 years |
Maximum | |
Capitalized Contract Cost [Line Items] | |
Amortization period | 5 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 981 | $ 975 | $ 988 |
GCI Holdings | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 981 | 969 | 970 |
GCI Holdings | Lease, grant, and revenue from subsidies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 77 | 77 | 77 |
GCI Holdings | Consumer Revenue | Data | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 233 | 231 | 214 |
GCI Holdings | Consumer Revenue | Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 143 | 143 | 134 |
GCI Holdings | Consumer Revenue | Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 41 | 55 | 86 |
GCI Holdings | Business Revenue | Data | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 424 | 392 | 364 |
GCI Holdings | Business Revenue | Wireless | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 45 | 47 | 68 |
GCI Holdings | Business Revenue | Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 18 | 24 | 27 |
Corporate and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6 | $ 18 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Selling, general and administrative | |||
Advertising expense | $ 5 | $ 4 | $ 5 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Concentrations (Details) - USF Program - Revenue - Customer concentration - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Customer concentration (as a percent) | 39% | 35% | 32% |
Receivables net, current | $ 102 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |||
Basic WASO | 146 | 157 | 185 |
Potentially dilutive shares | 1 | 1 | 1 |
Diluted WASO | 147 | 158 | 186 |
Antidilutive shares | 2 | 2 | 1 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Government Assistance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Proceeds from grant | $ 6 | $ 25 |
Grant | ||
Proceeds from grant | 6 | 25 |
Long-term deferred revenue | $ 41 | $ 37 |
Minimum | Grant | ||
Government assistance, transaction duration | 12 years | |
Maximum | Grant | ||
Government assistance, transaction duration | 18 years |
Supplemental Disclosures to C_3
Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Disclosures to Consolidated Statements of Cash Flows | |||
Cash paid for interest, net of amounts capitalized | $ 211 | $ 137 | $ 125 |
Cash paid for taxes, net | 49 | 266 | 238 |
Noncash activity: | |||
Property and equipment expenditures incurred but not yet paid | $ 15 | $ 22 | $ 19 |
Supplemental Disclosures to C_4
Supplemental Disclosures to Consolidated Statements of Cash Flows - Reconciliation of cash and cash equivalents and restricted cash (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Supplemental Disclosures to Consolidated Statements of Cash Flows | ||||
Cash and cash equivalents | $ 158 | $ 375 | $ 191 | |
Restricted cash included in other current assets | $ 16 | $ 24 | $ 15 | |
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | |
Restricted cash included in other long-term assets | $ 2 | $ 1 | ||
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Total cash and cash equivalents and restricted cash at end of period | $ 176 | $ 400 | $ 206 | $ 1,433 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value - Schedule of Assets and Liabilities (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 78 | $ 288 |
Indemnification obligation | 50 | |
Exchangeable senior debentures | 1,255 | 1,373 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 78 | 288 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Indemnification obligation | 50 | |
Exchangeable senior debentures | $ 1,255 | $ 1,373 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value - Schedule of Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net (note 4) | $ (101) | $ 334 | $ 67 |
Indemnification Obligation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net (note 4) | 5 | 273 | 21 |
Exchangeable senior debentures | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments, net (note 4) | $ (106) | $ 61 | $ 46 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | Feb. 28, 2023 | Nov. 23, 2020 | Aug. 27, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Indemnification payment | $ 45 | ||||||
1.75% Exchangeable Senior Debentures due 2046 | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Interest rate (as a percent) | 1.75% | 1.75% | |||||
1.25% Exchangeable Senior Debentures due 2050 | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Interest rate (as a percent) | 1.25% | 1.25% | 1.25% | ||||
2.75% Exchangeable Senior Debentures due 2050 | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% | ||||
3.125% Exchangeable Senior Debentures due 2053 | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | ||||
Exchangeable senior debentures | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Change in fair value | $ 55 | $ (7) | $ (2) | ||||
Exchangeable senior debentures | Maximum | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Cumulative change | $ 55 | ||||||
Exchangeable senior debentures | 1.75% Exchangeable Senior Debentures due 2046 | Indemnification obligation | LI LLC | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Interest rate (as a percent) | 1.75% | ||||||
Indemnification payment | $ 45 | ||||||
Debt exchanged | $ 330 |
Investment in Charter Account_3
Investment in Charter Accounted for Using the Equity Method (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in affiliates accounted for using the Equity Method | ||||
Amount of Charter sold | $ 394 | $ 3,034 | $ 4,179 | |
Charter. | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Carrying value of equity method investment | 12,116 | $ 11,433 | ||
Market value of equity method investment | $ 18,000 | |||
Ownership capped percentage | 25.01% | |||
Fully diluted ownership percentage | 26% | |||
Ownership percentage | 31.90% | |||
Series A common stock | Charter. | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Equity investment shares sold | 950,721 | 6,168,174 | 6,077,664 | |
Amount of Charter sold | $ 394 | $ 3,034 | $ 4,179 | |
Series A common stock | Charter. | Subsequent event | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Equity investment shares sold | 213,216 | |||
Amount of Charter sold | $ 81 |
Investment in Charter Account_4
Investment in Charter Accounted for Using the Equity Method - Class A common stock to Charter to maintain our fully diluted ownership percentage (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in affiliates accounted for using the Equity Method | ||||
Amount of Charter sold | $ 394 | $ 3,034 | $ 4,179 | |
Charter. | Series A common stock | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Number of Charter sold | 950,721 | 6,168,174 | 6,077,664 | |
Amount of Charter sold | $ 394 | $ 3,034 | $ 4,179 | |
Charter. | Series A common stock | Subsequent event | ||||
Investments in affiliates accounted for using the Equity Method | ||||
Number of Charter sold | 213,216 | |||
Amount of Charter sold | $ 81 |
Investment in Charter Account_5
Investment in Charter Accounted for Using the Equity Method - Excess Basis Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Excess basis allocation within memo accounts | |||
Share of equity investment income (losses) | $ 1,155 | $ 1,326 | $ 1,194 |
Loss on dilution of investment in affiliate | (60) | (63) | (102) |
Charter. | |||
Excess basis allocation within memo accounts | |||
Property and equipment, net | 403 | 524 | |
Customer relationships, net | 2,049 | 2,230 | |
Franchise fees | 3,843 | 3,809 | |
Trademarks | 29 | 29 | |
Goodwill | 4,049 | 3,975 | |
Debt | (317) | (450) | |
Deferred income tax liability | (1,472) | (1,505) | |
Total | 8,584 | 8,612 | |
Share of equity investment income (losses) | 1,155 | 1,326 | 1,194 |
Amortization of Deferred Charges | 277 | 232 | 234 |
Loss on dilution of investment in affiliate | $ (60) | $ (63) | $ (102) |
Charter. | Customer relationships | |||
Excess basis allocation within memo accounts | |||
Remaining useful lives of customer relationships | 7 years | ||
Charter. | Property, Plant and Equipment | |||
Excess basis allocation within memo accounts | |||
Remaining useful lives of property and equipment | 4 years |
Investment in Charter Account_6
Investment in Charter Accounted for Using the Equity Method -Summarized Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in affiliates accounted for using the Equity Method | |||
Current assets | $ 430 | $ 660 | |
Property and equipment, net | 1,053 | 1,011 | |
Goodwill | 755 | 755 | $ 762 |
Other assets | 236 | 180 | |
Total assets | 15,641 | 15,142 | |
Current liabilities | 178 | 1,675 | |
Deferred income taxes | 2,216 | 2,040 | |
Long-term debt | 3,736 | 3,801 | |
Other liabilities | 141 | 150 | |
Equity | 9,003 | 8,483 | |
Total liabilities and equity | 15,641 | 15,142 | |
Operating costs and expenses (excluding depreciation and amortization) | 245 | 253 | 282 |
Depreciation and amortization | 230 | 262 | 267 |
Total operating costs and expenses | 908 | 1,014 | 1,086 |
Operating income (loss) | 73 | (39) | (98) |
Other income (expense), net | 27 | (70) | (6) |
Income tax benefit (expense) | (200) | (277) | (218) |
Net earnings (loss) | 688 | 1,257 | 732 |
Net earnings (loss) attributable to Liberty Broadband shareholders | 688 | 1,257 | 732 |
Charter. | |||
Investments in affiliates accounted for using the Equity Method | |||
Current assets | 4,132 | 4,017 | |
Property and equipment, net | 39,520 | 36,039 | |
Goodwill | 29,668 | 29,563 | |
Intangible assets, net | 69,141 | 70,135 | |
Other assets | 4,732 | 4,769 | |
Total assets | 147,193 | 144,523 | |
Current liabilities | 13,214 | 12,065 | |
Deferred income taxes | 18,954 | 19,058 | |
Long-term debt | 95,777 | 96,093 | |
Other liabilities | 4,530 | 4,758 | |
Equity | 14,718 | 12,549 | |
Total liabilities and equity | 147,193 | 144,523 | |
Revenue | 54,607 | 54,022 | 51,682 |
Operating costs and expenses (excluding depreciation and amortization) | 33,405 | 32,876 | 31,482 |
Depreciation and amortization | 8,696 | 8,903 | 9,345 |
Other operating (income) expense, net | (53) | 281 | 329 |
Total operating costs and expenses | 42,048 | 42,060 | 41,156 |
Operating income (loss) | 12,559 | 11,962 | 10,526 |
Interest expense, net | (5,188) | (4,556) | (4,037) |
Other income (expense), net | (517) | 56 | (101) |
Income tax benefit (expense) | (1,593) | (1,613) | (1,068) |
Net earnings (loss) | 5,261 | 5,849 | 5,320 |
Less: Net income attributable to noncontrolling interests | (704) | (794) | (666) |
Net earnings (loss) attributable to Liberty Broadband shareholders | $ 4,557 | $ 5,055 | $ 4,654 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 755 | $ 762 |
Dispositions | (7) | |
Balance at the end of the period | 755 | 755 |
GCI Holdings | ||
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | 755 | 755 |
Dispositions | ||
Balance at the end of the period | 755 | 755 |
Corporate and other. | ||
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | 7 | |
Dispositions | (7) | |
Balance at the end of the period |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization, net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 671 | $ 662 |
Accumulated Amortization | (210) | (146) |
Net carrying amount | 461 | 516 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 515 | 515 |
Accumulated Amortization | (132) | (91) |
Net carrying amount | 383 | 424 |
Other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 156 | 147 |
Accumulated Amortization | (78) | (55) |
Net carrying amount | $ 78 | $ 92 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets | |||
Amortization expense | $ 64 | $ 67 | $ 75 |
Years ending December 31, | |||
2024 | 58 | ||
2025 | 53 | ||
2026 | 51 | ||
2027 | 48 | ||
2028 | $ 47 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | Nov. 23, 2020 | Aug. 27, 2020 |
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 3,724 | |||||
Deferred financing costs | (1) | $ (2) | ||||
Total debt | 3,736 | 3,801 | ||||
Debt classified as current | (3) | (1,376) | ||||
Total long-term debt | 3,733 | 2,425 | ||||
3.125% Exchangeable Senior Debentures due 2053 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 1,265 | |||||
Carrying value | $ 1,255 | |||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | |||
1.25% Exchangeable Senior Debentures due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value | $ 798 | |||||
Interest rate (as a percent) | 1.25% | 1.25% | 1.25% | |||
2.75% Exchangeable Senior Debentures due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value | $ 560 | |||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% | |||
1.75% Exchangeable Senior Debentures due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value | $ 15 | |||||
Interest rate (as a percent) | 1.75% | 1.75% | ||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | $ 600 | |||||
Carrying value | 623 | $ 628 | ||||
Line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 394 | |||||
Carrying value | 394 | 397 | ||||
Wells Fargo note payable | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 5 | |||||
Carrying value | 5 | 5 | ||||
SPV | Margin Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 1,460 | |||||
Carrying value | $ 1,460 | $ 1,400 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | |||||||||
May 17, 2023 | Feb. 28, 2023 | May 12, 2021 | Dec. 18, 2020 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Nov. 23, 2020 | Aug. 27, 2020 | Jun. 18, 2018 | |
3.125% Exchangeable Senior Debentures due 2053 | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 1,255,000,000 | |||||||||
Principal amount | $ 1,265,000,000 | |||||||||
Interest rate (as a percent) | 3.125% | 3.125% | 3.125% | |||||||
Shares attributable to debentures per $1,000 original principal amount of Debentures | 1.8901 | |||||||||
Total shares attributable to debentures | 2,390,977 | |||||||||
Debt instrument, face amount per debenture | $ 1,000 | |||||||||
Exchange price of shares attributable to debentures | $ 529.07 | |||||||||
Percentage of redemption and purchase price | 100% | |||||||||
3.125% Exchangeable Senior Debentures due 2053 | GCI Liberty Inc | ||||||||||
Debt disclosures | ||||||||||
Interest rate (as a percent) | 3.125% | |||||||||
Exchangeable Senior Debentures Option | ||||||||||
Debt disclosures | ||||||||||
Principal amount | $ 165,000,000 | $ 75,000,000 | $ 75,000,000 | |||||||
2.75% Exchangeable Senior Debentures due 2050 | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 560,000,000 | |||||||||
Principal amount | $ 575,000,000 | |||||||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.75% | |||||||
1.25% Exchangeable Senior Debentures due 2050 | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 798,000,000 | |||||||||
Principal amount | $ 825,000,000 | |||||||||
Interest rate (as a percent) | 1.25% | 1.25% | 1.25% | |||||||
1.75% Exchangeable Senior Debentures due 2046 | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 15,000,000 | |||||||||
Interest rate (as a percent) | 1.75% | 1.75% | ||||||||
1.75% Exchangeable Senior Debentures due 2046 | GCI Liberty Inc | ||||||||||
Debt disclosures | ||||||||||
Principal amount | $ 15,000,000 | |||||||||
Fair value of debt | $ 26,000,000 | |||||||||
Interest rate (as a percent) | 1.75% | |||||||||
Line of credit | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 394,000,000 | $ 397,000,000 | ||||||||
SPV | Margin Loan Facility | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 1,460,000,000 | $ 1,400,000,000 | ||||||||
Number of business days prior to the maturity date | 5 days | |||||||||
Remaining borrowing capacity | $ 840,000,000 | |||||||||
SPV | Margin Loan Facility | Charter. | Asset Pledged as Collateral | ||||||||||
Debt disclosures | ||||||||||
Shares owned | 19,100,000 | |||||||||
Value of pledged collateral | $ 7,400,000,000 | |||||||||
SPV | Margin Loan Facility | Three-month LIBOR | ||||||||||
Debt disclosures | ||||||||||
Interest rate basis | three-month LIBOR | |||||||||
Basis spread on variable rate | 1.50% | 1.85% | ||||||||
SPV | Margin Loan Facility | SOFR | ||||||||||
Debt disclosures | ||||||||||
Interest rate basis | three-month SOFR | |||||||||
Basis spread on variable rate | 1.875% | |||||||||
Commitment Fee Percentage | 0.50% | |||||||||
SPV | Term loan | ||||||||||
Debt disclosures | ||||||||||
Carrying value | $ 1,150,000,000 | |||||||||
SPV | Revolving Credit Facility | ||||||||||
Debt disclosures | ||||||||||
Maximum borrowing capacity | 1,150,000,000 | |||||||||
SPV | Uncommitted Incremental Term Loan Facility | ||||||||||
Debt disclosures | ||||||||||
Maximum borrowing capacity | $ 200,000,000 |
Debt - Senior Notes and Senior
Debt - Senior Notes and Senior Credit Facility (Details) $ in Millions | 1 Months Ended | |||||||
Jun. 30, 2023 | May 01, 2023 | Oct. 15, 2021 USD ($) | Dec. 18, 2020 USD ($) | Oct. 15, 2020 | Jun. 30, 2023 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Outstanding principal | $ 3,724 | |||||||
Fair value of debt | 1,255 | $ 0 | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value of debt | 556 | |||||||
Senior Notes | GCI Liberty Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | $ 600 | |||||||
Interest rate (as a percent) | 4.75% | |||||||
Aggregate unamortized premium | 23 | |||||||
Line of credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 394 | |||||||
Line of credit | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount available for borrowing | 397 | |||||||
Line of credit | Revolving Credit Facility | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 150 | |||||||
Line of credit | Standby Letters of Credit | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 3 | |||||||
Line of credit | Term Loan A | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | 244 | |||||||
Senior Credit Facility | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
First lien leverage ratio | 4 | |||||||
Revolving Credit Facility | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 550 | |||||||
Proceeds from revolving credit facility | 150 | |||||||
Revolving Credit Facility | SOFR | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | SOFR | |||||||
Revolving Credit Facility | SOFR | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Revolving Credit Facility | SOFR | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Revolving Credit Facility | LIBOR | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | LIBOR | |||||||
Revolving Credit Facility | LIBOR | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Revolving Credit Facility | LIBOR | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Revolving Credit Facility | Alternate base rate | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | alternate base rate | alternate base rate | ||||||
Revolving Credit Facility | Alternate base rate | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | 0.50% | ||||||
Revolving Credit Facility | Alternate base rate | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | 1.75% | ||||||
Standby Letters of Credit | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | 25 | |||||||
Term Loan A | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | 250 | |||||||
Percentage of original principal amount | 0.25% | |||||||
Change in percentage of original principal amount | 1.25% | |||||||
Term Loan A | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||||||
Term Loan A | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||||
Term Loan A | SOFR | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | SOFR | |||||||
Term Loan A | SOFR | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2% | |||||||
Term Loan A | SOFR | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.25% | |||||||
Term Loan A | LIBOR | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | SOFR | |||||||
Term Loan A | Alternate base rate | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Term Loan A | Alternate base rate | Maximum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Term Loan B | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt | $ 400 | |||||||
Term Loan B | LIBOR | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | LIBOR | |||||||
Basis spread on variable rate | 2.75% | |||||||
Term Loan B | LIBOR | Minimum | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate (as a percent) | 0.75% | |||||||
Term Loan B | Alternate base rate | GCI, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | alternate base rate | |||||||
Basis spread on variable rate | 1.75% | |||||||
Wells Fargo Notes Payable | GCI Liberty Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding principal | $ 6 | $ 5 | $ 5 | |||||
Wells Fargo Notes Payable | SOFR | GCI Liberty Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | SOFR | |||||||
Basis spread on variable rate | 1.75% | |||||||
Wells Fargo Notes Payable | LIBOR | GCI Liberty Inc | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate basis | LIBOR | |||||||
Basis spread on variable rate | 2.25% |
Debt - Annual Principal Maturit
Debt - Annual Principal Maturities of Debt (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Debt | |
2024 | $ 3 |
2025 | 3 |
2026 | 1,613 |
2027 | 238 |
2028 | $ 601 |
Leases (Details)
Leases (Details) - GCI Holdings | 12 Months Ended |
Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 1 year |
Operating lease, renewal term | 2 years |
Termination period | 30 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 27 years |
Operating lease, renewal term | 35 years |
Termination period | 14 years |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Total operating lease cost | $ 62 | $ 59 | $ 60 |
Finance lease cost | |||
Depreciation of leased assets | 1 | 1 | 1 |
Total finance lease cost | $ 1 | $ 1 | $ 1 |
Leases - Weighted Average Term
Leases - Weighted Average Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term (years): | |||
Finance leases | 2 years 6 months | 3 years 6 months | 4 years 6 months |
Operating leases | 4 years 1 month 6 days | 3 years 10 months 24 days | 4 years 2 months 12 days |
Weighted-average discount rate: | |||
Finance leases | 4.30% | 4.30% | 4.30% |
Operating leases | 7.70% | 6% | 4% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Operating leases: | ||
Operating lease ROU assets, net | $ 105 | $ 114 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Current operating lease liabilities | $ 45 | $ 45 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Operating lease liabilities | $ 56 | $ 65 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total lease liabilities | $ 101 | $ 110 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities, Current, Other Liabilities, Noncurrent | Other Liabilities, Current, Other Liabilities, Noncurrent |
Finance Leases: | ||
Property and equipment under finance leases | $ 8 | $ 4 |
Accumulated depreciation | (2) | (1) |
Property and equipment, net | $ 6 | $ 3 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Current obligations under finance leases | $ 1 | $ 1 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Obligations under finance leases | $ 1 | $ 2 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total finance lease liabilities | $ 2 | $ 3 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 59 | $ 57 | $ 55 |
Financing cash outflows from finance leases | 1 | 1 | 2 |
ROU assets obtained in exchange for lease obligations | |||
Operating leases | $ 41 | $ 11 | $ 108 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finance Leases | ||
2024 | $ 1 | |
2025 | 1 | |
Total payments | 2 | |
Total liabilities | 2 | $ 3 |
Operating Leases | ||
2024 | 48 | |
2025 | 24 | |
2026 | 22 | |
2027 | 8 | |
2028 | 5 | |
Thereafter | 13 | |
Total payments | 120 | |
Less: imputed interest | 19 | |
Total liabilities | 101 | $ 110 |
Tower Obligations | ||
2024 | 8 | |
2025 | 8 | |
2026 | 8 | |
2027 | 8 | |
2028 | 9 | |
Thereafter | 91 | |
Total payments | 132 | |
Less: imputed interest | 48 | |
Total liabilities | $ 84 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ (30) | $ (222) | $ (233) |
State and local | (2) | (1) | |
Total current income tax expense | (32) | (223) | (233) |
Deferred: | |||
Federal | (160) | (51) | 4 |
State and local | (8) | (3) | 11 |
Total deferred income tax expense | (168) | (54) | 15 |
Income tax benefit (expense) | $ (200) | $ (277) | $ (218) |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Differences between provision for income taxes and income tax expense computed by applying federal rates | |||
US federal income tax rate | 21% | 21% | 21% |
Computed expected tax benefits (expense) | $ (186) | $ (322) | $ (200) |
State and local taxes, net of federal income taxes | (8) | (4) | (8) |
Nontaxable equity contribution | 4 | 41 | 2 |
Change in valuation allowance | 1 | 4 | |
Sale of consolidated subsidiary | 2 | 15 | |
Change in tax rate - other | 14 | ||
Executive compensation | (5) | (7) | (14) |
Litigation settlement | (22) | ||
Other | (7) | (1) | 6 |
Income tax benefit (expense) | $ (200) | $ (277) | $ (218) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Tax loss and tax credit carryforwards | $ 36 | $ 32 |
Accrued stock-based compensation | 15 | 16 |
Deferred revenue | 27 | 20 |
Operating lease liabilities | 28 | 31 |
Other accrued liabilities | 7 | 28 |
Other future deductible amounts | 35 | 41 |
Total deferred tax assets | 148 | 168 |
Less: valuation allowance | (1) | (1) |
Net deferred tax assets | 147 | 167 |
Deferred tax liabilities: | ||
Investments | (1,871) | (1,688) |
Fixed assets | (196) | (201) |
Intangible assets | (262) | (276) |
Debt | (5) | (10) |
Operating lease ROU assets | (29) | (32) |
Total deferred tax liabilities | (2,363) | (2,207) |
Net deferred tax asset (liability) | $ (2,216) | $ (2,040) |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Income Taxes | |
Tax credit carryforward after tax | $ 36 |
Loss carryforward with no expiration | 32 |
Operating loss carryforwards expected to be unutilized | $ 1 |
Stockholders Equity (Details)
Stockholders Equity (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 18, 2020 USD ($) period $ / shares | Dec. 31, 2023 USD ($) Vote item shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Preferred stock, additional shares authorized | 42,700,000 | ||||
Preferred stock vote per share | $ | 0.33 | 0.33 | |||
Preferred stock fair value | $ | $ 158,000,000 | $ 203,000,000 | $ 158,000,000 | ||
Liquidation price per share | $ / shares | $ 25 | ||||
Dividend rate | 7% | ||||
Failure to pay cash dividends, number of periods | period | 4 | ||||
Potential increase in dividend rate, over four dividend periods | 2% | ||||
Preferred stock, dividends declared per share | $ / shares | $ 0.44 | ||||
GCI Liberty Inc | |||||
Preferred stock distribution ratio | 1 | ||||
Stock Buyback Program | |||||
Remaining authorized repurchase amount | $ | $ 1,800,000,000 | $ 1,800,000,000 | |||
Series A common stock | |||||
Number Of Votes | Vote | 1 | ||||
Series B common stock | |||||
Number Of Votes | Vote | 10 | ||||
Common Stock Shares Received In Exchange For One Share Of Series B | item | 1 | ||||
Series B common stock | Stock Buyback Program | |||||
Number of shares repurchased | 0 | 0 | 0 | ||
Series C common stock | |||||
Number Of Votes | Vote | 0 | ||||
Common Class A And C | Stock Buyback Program | |||||
Number of shares repurchased | 3,000,000 | 24,000,000 | 26,000,000 | ||
Value of stock repurchased | $ | $ 227,000,000 | $ 2,900,000,000 | $ 4,300,000,000 | ||
Series A Cumulative Redeemable Preferred Stock. | |||||
Preferred stock, shares authorized | 7,300,000 | 7,300,000 | |||
Preferred shares, shares issued | 7,183,812 | 7,183,812 | |||
Preferred shares, shares outstanding | 7,183,812 | 7,183,812 | |||
Common Class B and C | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 4,000,000 | 4,000,000 |
Stockholder Equity - Exchange A
Stockholder Equity - Exchange Agreement with Chairman (Details) - shares | Jan. 23, 2023 | Jul. 19, 2022 | Jun. 13, 2022 |
Series B common stock | |||
Stockholders' Equity | |||
Exchanged shares | 54,247 | 211,255 | 215,647 |
Board of Directors Chairman | |||
Stockholders' Equity | |||
Target voting power percentage | 49% | ||
Certain circumstances percentage | 0.50% |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | |||
Stock-based compensation | $ 34 | $ 37 | $ 41 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plans and Grants of Stock Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value assumptions | |||
Dividend rate | 0% | 0% | 0% |
Minimum | |||
Fair value assumptions | |||
Expected term | 5 years 1 month 6 days | 5 years 1 month 6 days | 5 years 1 month 6 days |
Volatility rate | 27.10% | 27.10% | 27.10% |
Maximum | |||
Fair value assumptions | |||
Expected term | 5 years 3 months 18 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Volatility rate | 31.30% | 31.30% | 31.30% |
Employee Stock Option [Member] | Series A and B common stock | |||
Stock Based Compensation | |||
Options granted (in shares) | 0 | 0 | 0 |
Employee Stock Option [Member] | CEO | Series C common stock | |||
Stock Based Compensation | |||
Options granted (in shares) | 129 | 136 | 167 |
Options grant date fair value | $ 27.83 | $ 39.10 | $ 40.05 |
Employee Stock Option [Member] | Employee | Series C common stock | |||
Stock Based Compensation | |||
Options granted (in shares) | 407 | 11 | 30 |
Options grant date fair value | $ 27.68 | $ 30.43 | $ 40.61 |
Employee Stock Option [Member] | Employee | Series C common stock | Minimum | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
Employee Stock Option [Member] | Employee | Series C common stock | Maximum | |||
Stock Based Compensation | |||
Vesting period | 3 years | ||
Employee Stock Option [Member] | Non-employee | Director | Series C common stock | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
Options granted (in shares) | 21 | 24 | 26 |
Options grant date fair value | $ 27.73 | $ 30.43 | $ 41.71 |
RSUs | Employees, Employees Of Subsidiaries and Non- Employee Directors | Series C common stock | |||
Stock Based Compensation | |||
RSUs granted (in shares) | 227 | 227 | 79 |
RSUs grant date fair value | $ 84.02 | $ 120.70 | $ 153.34 |
Time Based RSUs | Employee | Employees and Employees of Subsidiaries | Series C common stock | Minimum | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
Time Based RSUs | Employee | Employees and Employees of Subsidiaries | Series C common stock | Maximum | |||
Stock Based Compensation | |||
Vesting period | 5 years | ||
Time Based RSUs | Non-employee | Director | Series C common stock | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
Performance Based RSUs | Employees, Employees Of Subsidiaries and Non- Employee Directors | Series C common stock | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
2019 Plan | |||
Stock Based Compensation | |||
Number of authorized shares | 6,000 | ||
2019 Plan | Minimum | |||
Stock Based Compensation | |||
Vesting period | 1 year | ||
Term of awards | 7 years | ||
2019 Plan | Maximum | |||
Stock Based Compensation | |||
Vesting period | 5 years | ||
Term of awards | 10 years |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Awards and Exercises (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Awards | |||
Compensation cost not yet recognized | |||
Unrecognized compensation cost options | $ 38 | ||
Period over which unrecognized compensation cost will be recognized | 1 year 7 months 6 days | ||
Awards | Series A common stock | |||
Options | |||
Outstanding ending balance (in shares) | 0 | ||
Awards | Series C common stock | |||
Options | |||
Outstanding beginning balance (in shares) | 3,602,000 | ||
Options granted (in shares) | 558,000 | ||
Exercised (in shares) | (60,000) | ||
Forfeited/Cancelled (in shares) | (37,000) | ||
Outstanding ending balance (in shares) | 4,063,000 | 3,602,000 | |
Number of awards exercisable (in shares) | 3,113,000 | ||
WAEP | |||
WAEP Outstanding beginning balance (in dollars per share) | $ 98.62 | ||
WAEP Options granted (in dollars per share) | 77.98 | ||
WAEP options exercised (in dollars per share) | 69.76 | ||
WAEP options forfeited/cancelled (in dollars per share) | 95.42 | ||
WAEP Outstanding ending balance (in dollars per share) | 96.23 | $ 98.62 | |
WAEP options exercisable (in dollars per share) | $ 88.02 | ||
Options additional disclosures | |||
Weighted average remaining contractual life outstanding | 3 years 1 month 6 days | ||
Weighted average remaining contractual life exercisable | 2 years 4 months 24 days | ||
Aggregate intrinsic value outstanding | $ 50 | ||
Aggregate intrinsic value exercisable | $ 49 | ||
Awards | Series B and Series C common stock | |||
Compensation cost not yet recognized | |||
Shares reserved for future issuance upon exercise of stock options | 4,000,000 | ||
Employee Stock Option [Member] | |||
Options additional disclosures | |||
Aggregate intrinsic value of options exercised during period | $ 1 | $ 3 | $ 27 |
Employee Stock Option [Member] | Series B common stock | |||
Options | |||
Forfeited/Cancelled (in shares) | (69,000) | ||
WAEP | |||
WAEP options forfeited/cancelled (in dollars per share) | $ 97.21 | ||
Employee Stock Option [Member] | CEO | Series B common stock | |||
Options | |||
Exercised (in shares) | (37,000) | (370,000) | |
Outstanding ending balance (in shares) | 246,000 | ||
WAEP | |||
WAEP options exercised (in dollars per share) | $ 97.21 | ||
WAEP Outstanding ending balance (in dollars per share) | $ 95.98 | ||
Options additional disclosures | |||
Weighted average remaining contractual life outstanding | 8 months 12 days | ||
Aggregate intrinsic value outstanding | $ 0 | ||
Employee Stock Option [Member] | CEO | Series C common stock | |||
Options | |||
Options granted (in shares) | 129,000 | 136,000 | 167,000 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other than Options (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Common Stock Class A and C | |||
Stock Based Compensation | |||
Fair value of outstanding grants | $ 12 | $ 18 | $ 28 |
Common Stok Class A and C, Series A cumulative redeemable preferred stock | |||
Stock Based Compensation | |||
Unvested shares outstanding | 371 | ||
Weighted average grant date fair value awards outstanding unvested (in dollars per share) | $ 101.09 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans | |||
Employer cash contribution | $ 11 | $ 12 | $ 12 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Oct. 09, 2020 plaintiff | Oct. 10, 2018 USD ($) | Sep. 30, 2021 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 16, 2021 item | Dec. 31, 2019 USD ($) | |
Other Commitments [Line Items] | |||||||||
Litigation settlement expense | $ 67 | $ 95 | |||||||
Charter And Liberty Broadband Delaware Litigation | |||||||||
Other Commitments [Line Items] | |||||||||
Payments for Legal Settlements | $ 38 | ||||||||
Hollywood Firefighters' Pension Fund et al Versus GCI Liberty, Inc. et al | |||||||||
Other Commitments [Line Items] | |||||||||
Number of plaintiffs | plaintiff | 2 | ||||||||
Litigation settlement expense | $ 110 | 110 | |||||||
Mootness fee, recorded as litigation settlement expense | $ 9 | ||||||||
Insurance recoveries | $ 24 | ||||||||
Number of insurance carriers | item | 5 | ||||||||
Rural Health Care ("RHC") Program | GCI Holdings | |||||||||
Other Commitments [Line Items] | |||||||||
Reduction of rural rate | 26% | ||||||||
Reduction in support payment due to reduction of rural rate | $ 28 | ||||||||
Account receivables collected | $ 175 | ||||||||
Number of additional sites submitted for approval of rates. | item | 17 | ||||||||
Rural Health Care ("RHC") Program | GCI Holdings | Trade and other receivable | |||||||||
Other Commitments [Line Items] | |||||||||
Net accounts receivable | 74 | ||||||||
GCI Holdings | Rural Health Care ("RHC") Program | |||||||||
Other Commitments [Line Items] | |||||||||
Litigation settlement expense | 15 | ||||||||
Estimated Litigation Liability | 27 | $ 12 | |||||||
Payments for Legal Settlements | 41 | ||||||||
GCI Holdings | Rural Health Care ("RHC") Program | DOJ | |||||||||
Other Commitments [Line Items] | |||||||||
Payments for Legal Settlements | 14 | ||||||||
GCI Holdings | Rural Health Care ("RHC") Program | FCC | |||||||||
Other Commitments [Line Items] | |||||||||
Payments for Legal Settlements | $ 27 | ||||||||
GCI Holdings | Rural Health Care ("RHC") Program | |||||||||
Other Commitments [Line Items] | |||||||||
Litigation settlement expense | $ 14 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 981 | $ 975 | $ 988 |
Adjusted OIBDA | 337 | 327 | 305 |
Total assets | 15,641 | 15,142 | |
Investments in affiliates | 12,116 | 11,433 | |
Capital expenditures | 222 | 181 | |
GCI Holdings | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 981 | 969 | 970 |
GCI Holdings | Lease, grant, and revenue from subsidies | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 77 | 77 | 77 |
Charter | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Financial results included in the disclosure (as a percent) | 100% | ||
Operating Segments and Corporate and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 55,588 | 54,997 | 52,670 |
Adjusted OIBDA | 22,284 | 21,662 | 20,606 |
Total assets | 162,834 | 159,665 | |
Investments in affiliates | 12,116 | 11,433 | |
Capital expenditures | 11,337 | 9,557 | |
Corporate and other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 6 | 18 | |
Adjusted OIBDA | (24) | (31) | (49) |
Total assets | 12,301 | 11,764 | |
Investments in affiliates | 12,116 | 11,433 | |
Operating segments | GCI Holdings | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 981 | 969 | 970 |
Adjusted OIBDA | 361 | 358 | 354 |
Total assets | 3,340 | 3,378 | |
Capital expenditures | 222 | 181 | |
Operating segments | Charter | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 54,607 | 54,022 | 51,682 |
Adjusted OIBDA | 21,947 | 21,335 | 20,301 |
Total assets | 147,193 | 144,523 | |
Capital expenditures | 11,115 | 9,376 | |
Eliminate equity method affiliate | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | (54,607) | (54,022) | (51,682) |
Adjusted OIBDA | (21,947) | (21,335) | (20,301) |
Total assets | (147,193) | (144,523) | |
Capital expenditures | (11,115) | (9,376) | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 981 | $ 975 | 986 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 2 |
Segment Information - Reconcili
Segment Information - Reconciliation Of Segment Adjusted OIBDA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of consolidated segment Adjusted OIBDA to earnings (loss) before income taxes | |||
Adjusted OIBDA | $ 337 | $ 327 | $ 305 |
Stock-based compensation | (34) | (37) | (41) |
Depreciation and amortization | (230) | (262) | (267) |
Litigation settlement, net of recoveries | (67) | (95) | |
Operating income (loss) | 73 | (39) | (98) |
Interest expense | (206) | (133) | (117) |
Share of earnings (loss) of affiliate, net | 1,155 | 1,326 | 1,194 |
Gain (loss) on dilution of investment in affiliate | (60) | (63) | (102) |
Realized and unrealized gains (losses) on financial instruments, net | (101) | 334 | 67 |
Gain (loss) on dispositions, net | 179 | 12 | |
Other, net | 27 | (70) | (6) |
Earnings (loss) before income taxes | $ 888 | $ 1,534 | $ 950 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 688 | $ 1,257 | $ 732 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |